September 28 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Wednesday it expects Kosovo's gross domestic product (GDP) to increase by 4% in 2022, keeping unchanged its May forecast.
Kosovo's economic growth is seen slowing down to 3.7% in 2023, the EBRD said in the September edition of its Regional Economic Prospects report.
In the May issue of the report, the EBRD projected an economic growth of 4% for Kosovo in 2023.
Lower gas supplies from Russia and rising inflation on a global level is expected to further slow economic growth in 2023 in the regions where EBRD works, the bank said.
The EBRD forecasts economic growth of 3.2% in 2022 and 3% in 2023 for the Western Balkans region. However, projections are subject to major downside risk should Russia’s war on Ukraine escalate or the volume of its gas exports decline even more, the EBRD added.
Kosovo's economy grew by 10.5% in 2021, after shrinking by 5.3% in 2020.