PRISTINA (Kosovo), May 9 (SeeNews) – The European Bank for Reconstruction and Development (EBRD) raised on Wednesday its projection for Kosovo's economic growth in 2018 to 3.7% from 3.5% predicted in November.
The economic growth will be mainly driven by investment and exports, the EBRD said in its new Regional Economic Prospects report.
“The unemployment rate continued its declining path over the last three years and now stands at 27.5 per cent. However, the low rate of labour force participation, especially among women, represents a key bottleneck for further economic development,” the bank said.
According to EBRD, future growth may also depend on the pace of implementation of a planned new 500MW thermal power plant, for which a contract was signed between the Kosovo government and ContourGlobal in December 2017.
EBRD also said it sees Kosovo’s economic growth in 2019 at 4%.
“However, downside risks include possible delays to key infrastructure projects, which are crucial for the long-term sustainability of the economy," the report reads.
In 2017, Kosovo economic growth slowed to 3.7%, from 4.1% in 2016, the EBRD estimated.
The EBRD expects the economy of Southeast Europe to grow by 3.6% in 2018 and by 3.5% next year.