May 10 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Wednesday it has confirmed its earlier projection for Kosovo's economic growth this year at 3.5%.
The economic growth is expected to be mainly driven by private consumption, remittances inflows and the public investments in infrastructure, the EBRD said in its latest Regional Economic Prospects report.
During 2016, Kosovo's gross domestic products (GDP) grew by 3.4%, down from 4% in 2015. Private consumption and major remittances inflows were the main growth drivers.
"On the other hand, government consumption and net exports made negative contributions to growth with the latter reflecting the country’s weak production base and low competitiveness," the lender said.
Public debt remained low by regional standards, at about 15% of the GDP, the bank said adding that the fiscal discipline has been maintained within the framework of the 22-month IMF Standby Agreement. The agreement with IMF was extended until August 2017.