November 4 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Thursday it expects Kosovo's gross domestic product (GDP) to increase by 7.7% in 2021 this year, revising upwards its earlier projection.
The EBRD projected 4% economic growth for Kosovo in June.
In 2022, Kosovo's economic growth is expected to slow down to 4.5% in 2022, the EBRD said in its latest Regional Economic Prospects report.
Household consumption was backed by rising remittances and credit growth in Kosovo, while exports of services and goods grew strongly in 2021, even compared with pre-pandemic levels.
Risks to Kosovo's economic growth projections relate to the pandemic and potential weaknesses in the external sector, the EBRD said.
For the Western Balkans region, the EBRD expects an economic growth of 6.4% in 2021 and 4% in 2022.
Kosovo's economy shrank 5.34% on the year in 2020, according to a data by the country's statistical office.