December 28 (SeeNews) - Kosovo's economic output is expected to increase by 3-4% in 2022, after growing by 10.75% in 2021, due to lower domestic demand and increased imports, central bank governor Fehmi Mehmeti said.
The change in global dynamics as a result of the war in Ukraine, accompanied by rising inflation, monetary policies adjustments, increasing interest rates and global trade slowdown was reflected in the economic activity in Kosovo in 2022, Mehmeti said in a statement posted by the central bank website on Tuesday.
The average annual inflation in the January-November period reached 11.5%, mirroring an increase in prices in international markets, which in Kosovo is transmitted through the increase in the prices of imported goods, the statement read.
Foreign direct investments increased, as their value reached 567 million euro in the January-September period, up compared with 395 million euro recorded for the same period a year earlier, the governor said.
Kosovo's financial system indicators show a high level of stability in all aspects, Mehmeti said.
Average inflation rate in 2022 is projected at 11%, according to an earlier report by the central bank.
Kosovo's GDP rose by a real 2.07% year-on-year in the third quarter of 2022, after increasing by 2.14% in the previous three-month period, the statistical office said earlier in December.