Kosovo GDP Growth Slows to 4.06% in Q2

Kosovo’s economy grew 4.06% year-on-year in the second quarter of 2026, slowing from a downwardly revised 5.27% expansion in the previous quarter. Growth was broad-based across sectors, with wholesale and retail trade, repair of motor vehicles and motorcycles, transport and storage, and accommodation and food service activities rising 3.48%. Financial and insurance activities also increased sharply, by 15.67%. Additional growth came from information and communication (5.04%), arts, entertainment and recreation, household production activities for own use and other service activities (1.29%), scientific, professional and technical activities and administrative and support service activities (3.99%), and manufacturing (3.48%). From the expenditure side, exports of goods and services had the largest impact, rising 6.82%, while gross fixed capital formation increased 11.91%. Government spending rose 7.02%, while household consumption increased 4.4%.

Kosovo’s economy grew by 5.43% year-on-year in the first quarter of 2026, accelerating from a 3.85% expansion in the previous quarter. This marked the strongest economic growth in two years, driven by a broad-based expansion across sectors, led by public administration, defense, education, health, and social work activities, which rose 22.11%. Other key contributors included arts, entertainment and other services (13.11%), financial and insurance activities (4.76%), scientific and administrative services (3.52%), information and communication (3.02%), and wholesale and retail trade, transport, storage, accommodation, and food services (2.11%). From the expenditure side, net trade made the largest contribution to growth, as exports of goods and services surged 17.26%, while imports increased 5.02%. Gross capital formation rose 3.01%, and government final consumption expenditure jumped 16.53%, whereas household and NPISH final consumption spending declined 0.91%.

Kosovo’s economy grew by 3.85% year over year in the fourth quarter of 2025, accelerating from a 3.08% expansion in the previous quarter. Growth was mainly driven by wholesale and retail trade, repair of motor vehicles and motorcycles, transport and storage, and accommodation and food service activities, which expanded 5.71%. Other key contributors included financial and insurance activities (5.16%) and information and communication (4.98%). From the expenditure side, net trade made the largest contribution to growth, as exports jumped 11.49% while imports rose a more modest 1.95%. Gross capital formation increased 3.45%, and household consumption edged up 0.62%, whereas government spending declined by 1.03%.