PRISTINA (Kosovo), June 29 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Tuesday it expects Kosovo's gross domestic product (GDP) to grow by 4% in 2021 this year, maintaining its September forecast.
Kosovo's economic growth is further expected to accelerate to 5% in 2022, the EBRD said in its latest Regional Economic Prospects report.
The recovery in investment and in travel and tourism activities will back Kosovo's economic rebound in 2021, assuming travel restrictions are eased during the second half of the year, the report read.
Downside risks include slower recovery of diaspora visits and a weak public investment management, which could be enhanced with faster implementation of key infrastructure projects, the EBRD added.
Kosovo's economy shrank by an annual 4.1% in 2020.
For the Western Balkans region, the EBRD is projecting a GDP growth of 5.1% in 2021 and 3.8% in 2022.