This report aims to identify barriers, needs, and potential opportunities for Kosovo to digitally transform its basic education system to strengthen efficiency and improve student performance in foundational skills (including digital skills). The rest of the report is structured as follows....

This paper presents Republic of Kosovo's Fourth reviews under the Stand-By Arrangement and the Arrangement under the Resilience and Sustainability Facility. Kosovo's economic performance continues to be strong. In 2024, growth was 4.4 percent, driven by household consumption, supported by strong...

Kosovo has been solidifying its eƯorts for the green transition, shaped by international and national commitments. The country joined global climate action eƯorts in 2018, setting voluntary national commitments to reduce greenhouse gas emissions and increase the share of renewable energy. As...

Economic governance is a key aspect of the EU enlargement process, mirroring efforts in the EU to strengthen economic policy coordination and multilateral surveillance under the European Semester. The Annual Economic and Financial Dialogue with Regional Partners aims to prepare these (potential)...

Kosovo has embarked on a journey of digital transformation, developing digital infrastructure to provide access to households, companies, and educational institutions and modernizing its public finance system through GovTech. Digitalization and GovTech can facilitate Kosovo leapfrogging into...

IMF Fiscal Affairs Department mission reviewed Kosovo's tax administration progress, highlighting achievements in increased revenue collection and compliance risk management. Recommendations for further improvement include focusing on digital transformation, enhancing human resource capacity,...

This paper examines the evolution and challenges of Kosovo's pension system. Since its inception, a basic pension and mandatory individual accounts have formed the key element of Kosovo's pension system. Over the years, the pension system has expanded to include a variety of merit pensions,...

This paper analyzes the transmission of ECB policy rate changes to bank interest rates in Kosovo during the 2022-23 tightening cycle. While both lending and deposit rates increased, the passthrough was more limited compared to the euro area and regional peers. Three key factors explain this...

This paper analyzes reserve adequacy measurement in Kosovo, where euro serves as the legal tender. The study adapts the IMF's Assessing Reserve Adequacy framework to Kosovo's unique monetary context, focusing on precautionary motives for holding reserves. The analysis reveals limited readily...

Kosovo's female labor force participation ranks among the lowest globally, resulting in a substantial gender participation gap. This paper examines the drivers of this phenomenon and estimates the potential economic gains from eliminating this disparity. Additionally, it introduces a framework...

This paper highlights recent trends in the Kosovo labor market and emigration. Like other Western Balkan countries, Kosovo experienced a sharp decline in population over the previous decade, as emigration increased. Using a structural model of the labor market and migration, the paper examines...

This report describes the bioeconomy policy developments in Albania, Armenia, Bosnia and Herzegovina, Georgia, Kosovo*, Montenegro, North Macedonia, Moldova, Serbia, Türkiye and Ukraine, associated to the Horizon Europe Framework Programme. The work extends the geographic coverage of the...

Since 25 June 2024, the 27 member states of the European Union (EU) have been engaging in accession negotiations with Ukraine and Moldova. The EU wants and needs to provide a strategic response to new geopolitical challenges, especially the Russian war of aggression against Ukraine. At the same...

Remittances play an essential role in the interlinkage of migration and development. While past research has focused mainly on the monetary flows and their determinants, this article offers a deeper understanding of remitting as a social practice. Our research contributes to the emerging...

This paper explores the Taxation system in the Republic of Kosovo. It researches the need and reasons for the optimal taxation system that the Republic of Kosovo should develop as part of the proposed Taxation reform (based on recommendation). The Republic of Kosovo is the newest country in...

This report describes the employment and social situation of young people in the Western Balkans (Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia - the WB6) and also looks at employment in Türkiye. It focuses on young people because they were particularly hard...

This report describes the employment and social situation of young people in the Western Balkans (Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia - the WB6) and also looks at employment in Türkiye. It focuses on young people because they were particularly hard...

Soil contamination in the Western Balkans is a significant challenge, hampered by inadequate legal frameworks, lack of comprehensive field data, and insufficient site investigations. This report aims to support the JRC's efforts to fill information gaps on soil pollution across the Western...

As Europe and the United States head into key elections, the strained security situation in northern Kosovo and heightened tensions between Kosovo and Serbia are raising concerns about stability in the region. To restore its credibility, particularly in its pursuit of EU and NATO membership,...

As Europe and the United States head into key elections, the strained security situation in northern Kosovo and heightened tensions between Kosovo and Serbia are raising concerns about stability in the region. To restore its credibility, particularly in its pursuit of EU and NATO membership,...

The project's main aim is to strengthen cooperation within the Western Balkans and between the region and the EU on fighting organised crime and terrorism using modern tools and instruments. This will lead to an enhanced level of interaction and integration between the EU and the Western Balkan...

The project's main aim is to strengthen cooperation within the Western Balkans and between the region and the EU on fighting organised crime and terrorism using modern tools and instruments. This will lead to an enhanced level of interaction and integration between the EU and the Western Balkan...

ECDC is helping countries in the Western Balkans and Türkiye to improve their infectious disease prevention and control systems and public health workforce to prepare them for their future participation in ECDC's work. Technical cooperation with Western Balkans and Türkiye aims to improve...

Purpose - What are the effects of implementing various types of innovation, including product, process, and technological innovations, on the performance of SMEs in the manufacturing sector? This is a question that preoccupies us a lot. This study seeks to examine the individual and integrated...

Migrationspolitik ist mittlerweile ein zentrales Thema bei Wahlen. In der Debatte um eine bessere Steuerung von Migration kommen wesentliche Aspekte allerdings zu kurz. So sind wir in Deutschland längst auf Erwerbsmigration angewiesen, zugewanderte Arbeitskräfte kompensieren den...

The Kosovo Energy Efficiency and Renewable Energy Project (KEEREP) successfully generated direct and indirect employment opportunities in Kosovo through EE retrofits and related activities. The project also contributed to skill development and market growth in the EE sector, potentially leading...

The Kosovo Energy Efficiency and Renewable Energy Project (KEEREP) successfully generated direct and indirect employment opportunities in Kosovo through EE retrofits and related activities. The project also contributed to skill development and market growth in the EE sector, potentially leading...

Recent developments, outlook, and risks. Kosovo's economy has continued to perform well, despite a challenging external environment. Real GDP growth moderated to 3¼ percent in 2023 amid subdued external demand. Inflation has decelerated sharply, reaching 2 percent y/y in the first quarter of...

Since 25 June 2024, the 27 member states of the European Union (EU) have been engaging in accession negotiations with Ukraine and Moldova. The EU wants and needs to provide a strategic response to new geopolitical challenges, especially the Russian war of aggression against Ukraine. At the same...

The SBA has served as insurance against adverse shocks while guiding reforms to strengthen fiscal and financial governance and foster growth. The RSF has supported climate reforms to increase generation of renewable energy, boost energy efficiency, enhance regional cooperation, and strengthen...

This paper presents an in-depth overview of foreign direct investments (FDI) in Kosovo's economy over more than twenty years. FDI has played a central role, proving indispensable to the development of Kosovo's economy. Thus, FDI is primarily directed towards economic activities like real estate,...

This research investigates the synergistic relationship between sustainability and financial prosperity in businesses, specifically focusing on the impact of consumers on profit growth in Kosovo and Albania. The study aims to understand consumers' perceptions of their purchases, the factors...

Migrationspolitik ist mittlerweile ein zentrales Thema bei Wahlen. In der Debatte um eine bessere Steuerung von Migration kommen wesentliche Aspekte allerdings zu kurz. So sind wir in Deutschland längst auf Erwerbsmigration angewiesen, zugewanderte Arbeitskräfte kompensieren den...

This paper explores the repercussions of the COVID-19 pandemic on the banking sector, focusing on the escalation of credit risk and its effects on non-performing loans (NPLs), loan loss provisions, and economic activity in the Republic of Kosovo. Amidst the global health crisis, the banking...

With the ever-increasing development in information and communication technology and the spread of the internet into personal computers and mobile devices, the promotion of products has become an essential component in the new digital age, mostly thanks to digital marketing.  Every day,...

Über den Jahreswechsel haben sich die Spannungen zwischen Serbien und Kosovo wieder einmal verschärft. Dies geschah im Kontext der Verhandlungen über einen neuen Vorschlag der EU - den deutsch-französischen oder "europäischen" Vorschlag -, der darauf abzielt, die Beziehungen zwischen...

Over the new year, tensions between Serbia and Kosovo rose once again. This occurred in the context of negotiations on a new European Union (EU) proposal - also known as the Franco-German or "European" proposal aimed at formalising relations between Belgrade and Pristina, much along the lines of...