May 11 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) affirmed on Wednesday its projection for Kosovo's gross domestic product (GDP) growth at 3% in 2016, forecasting that in 2017 it will speed to 3.5%.
The growth will be caused by a further increase in investments and ongoing reforms, the bank said in its latest Regional Economic Prospects report.
In 2015, Kosovo's economy recovered to 3% growth, boosted by strong domestic demand and an increase in investment, the bank noted.
During the year, Kosovo signed a 22-month 185 million euro loan deal with the IMF, which is helping the country in cutting unproductive current spending, while increasing space for critical investment in transport and energy infrastructure, improving competitiveness, and reducing corruption and informality.