May 10 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Tuesday it expects Kosovo's gross domestic product (GDP) to increase by 4% in 2022, unchanged compared with its March forecast.
In 2023, Kosovo's economic output is projected to grow by 4% as well, the EBRD said in the May edition of its Regional Economic Prospects report.
"The main risks to the outlook are rising uncertainties, growing commodity prices and potential weaknesses in the external sector," the EBRD noted.
For the Western Balkans region, the EBRD forecasts economic growth of 3.2% in 2022 and 3.6% in 2023.
The revisions since March are driven mostly by a larger than expected contraction in Ukraine as the war continues, the lender said.
"Projections are subject to major downside risks should hostilities escalate or should exports of gas or other commodities from Russia become more restricted," the EBRD added.
Kosovo's economy grew by 10.5% in 2021 according to preliminary estimates, after shrinking 5.3% in 2020.