Kosovo GDP Growth Hits 5-Quarter High

Kosovo’s economy expanded 3.08% year-on-year in third quarter 2025, slowing from 4.58% in the previous quarter. Growth in Q3 was supported by strong domestic investment and consumption, with gross fixed capital formation up 13.1% and household final consumption rising 4.16%. External trade remained active, as exports of goods and services increased 2.48% and imports rose 7.39%. Government final consumption decreased by 1.7%. By sector, the primary sector grew 3.42%, led by agriculture, forestry, and fisheries. The secondary sector recorded robust gains, driven by construction (+7.19%), manufacturing (+3.16%), and extractive industries, utilities, and related activities (+1.32%). The tertiary sector advanced overall, with financial and insurance activities (+8.13%), professional, scientific, and administrative services (+4.76%), and information and communication (+2.95%) leading the growth.

Kosovo’s economy expanded 4.58% year-on-year in Q2 2025, the fastest pace since Q1 2024, accelerating from a downwardly revised 2.83% growth in Q1. Growth was driven by a 10.99% increase in gross fixed capital formation and a 3.91% rise in household consumption, alongside strong external trade, with exports rising 10.42% and imports surging 13.23%. By sector, agriculture, forestry, and fisheries rose 2.98%, while the secondary sector was mixed: construction increased 4.15% and manufacturing 3.34%, but extractive industry; processing; electricity, gas, steam and air supply; water supply; waste treatment and management activities, rehabilitation fell 6.79%. The tertiary sector advanced overall, led by financial and insurance activities (+8.79%) and public administration and defence; compulsory social security; education; health and social work activities (+0.99%).

Kosovo’s economy advanced by 3.61 percent year-on-year in the first quarter of 2025, slowing from a 4.08 percent growth in the previous quarter. This marked the slowest expansion since the second quarter of 2023, mainly due to a negative contribution from net external demand. Imports jumped by 14.36 percent from a year earlier (vs 8.55 percent in Q4 2024), outpacing the 12.07 percent rise (vs 11.13 percent) in exports. In contrast, gross capital formation climbed by 13.62 percent, while household consumption saw a modest 4.27 percent increase.