UPDATE 1 - Kosovo's Aug Trade Gap Widens 21.4% Y/Y to 165 Mln Euro

In July the trade deficit was 155.4 million euro, up by 36.6% from a year earlier.

In August 2007 the trade gap was 135.76 million euro, 39.4% bigger than a year earlier, the statistics office said in its monthly report.

Kosovo exported mainly raw materials, which accounted for 66.1% of the August exports. Exports of vegetables accounted for 8.7%, followed by foods with a 5.7% share.

Kosovo imported mostly raw materials, 23% of the August total imports, followed by food, beverage and tobacco with a combined 15.1% share. Machinery and electrical appliances made up 10.5% of all imports in August.

The European Union was Kosovo's main foreign market in August. Exports to the EU accounted for 35.9% of all exports. Belgium was Kosovo's main export destination with 9.1% of the total, followed by Italy with 7.2%.

Kosovo's imports originated mainly from the EU, which had a 31.8% share of the total, followed by Macedonia with a 21.8% share.

KOSOVO AUGUST TRADE BALANCE (in millions of euro):

Kosovo, where 90% of the population is ethnic Albanian, declared its secession from Serbia on February 17 after almost nine years under the administration of the United Nations. Fifty countries have recognised Kosovo as an independent state since. Serbia, backed by its historical ally Russia, says it would never recognise Kosovo's independence.

($=0.8055 euro)