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Republic of Kosovo: Fourth Reviews Under the Stand-By Arrangement and the Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Republic of Kosovo

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  • International Monetary Fund

Abstract

This is the final review under the Stand-by Arrangement (SBA) and the Resilience and Sustainability Facility (RSF). The SBA has supported macroeconomic stability, provided insurance against shocks, and guided fiscal and financial reforms. The RSF has helped advance the authorities’ strategic objectives to increase renewable energy generation, boost energy efficiency, and enhance regional cooperation. Growth accelerated in 2024, driven by private consumption, while inflation has declined sharply. The fiscal deficit was low in 2024, and public debt further declined. However, the current account deficit widened with higher imports and lower remittances growth. Following the February 9 parliamentary elections, a new coalition government has yet to be formed. The outlook is favorable, but risks include escalation of trade tensions, higher commodity prices, weaker activity in advanced Europe, and tensions in northern Kosovo.

Suggested Citation

  • International Monetary Fund, 2025. "Republic of Kosovo: Fourth Reviews Under the Stand-By Arrangement and the Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Direc," IMF Staff Country Reports 2025/112, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2025/112
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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=567057
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