Kosovo profile

Demography and Health

Kosovo’s population stood at about 1.53 million in 2024 (1,527,324), ranking around 153 globally by size, reflecting a relatively small and concentrated domestic market. The demographic profile is young, with a crude birth rate of 12.1 per 1,000 people in 2023 and a life expectancy at birth of 78.0 years (2023). The crude death rate is 5.87 per 1,000 (2023), and under-5 mortality is 9.1 per 1,000 live births (2023). Combining birth and death dynamics suggests a positive natural increase, yet another key driver of population change is migration. Net migration in 2024 was -21,178, a substantial outflow that, when juxtaposed with a positive natural increase, points to a likely slowing of net population growth and potential aging of the resident population over time if emigration persists. When placed together, these indicators imply that Kosovo faces a complex demographic dynamic: a relatively youthful population with improving health outcomes, but significant outmigration that could influence the labor force, human capital stock, and long-run growth prospects. Health outcomes such as life expectancy are favorable by regional standards, and continued investment in maternal, child, and primary health services will be important to sustain improvements in mortality and well-being across districts and communities. The timing and quality of health infrastructure, access to care, and regional disparities will shape how demographic trends translate into development dividends.

Economy

Kosovo’s economy presents a mix of modest current living standards and substantial openness. GDP per capita is 7,299 current US dollars in 2024, with GDP per capita at purchasing power parity (PPP) of 18,620 international dollars, indicating that while market incomes are relatively low in nominal terms, relative purchasing power is higher when considering local price levels. The inflation rate remains contained at 1.62% in 2024, suggesting price stability that supports household budgeting and business planning. The unemployment rate stands at 12.1% (2022 data), signaling that a sizable portion of the labor force remains unemployed despite other positive indicators; structural reforms will be critical to better match skills with job opportunities and to reduce informal employment. Fiscal and monetary policy context is not fully captured here, but the macro milieu appears relatively stable on price grounds. Economic resilience is further indicated by FDI inflows, which amount to 8.68% of GDP in 2023, underscoring a meaningful external investment presence that has the potential to foster productivity, technology transfer, and job creation. The GDP landscape is also shaped by trade openness and external linkages, with exports of goods and services at 41.9% of GDP (2024) and imports at 72.3% of GDP (2024), highlighting a highly open economy that integrates into regional and global value chains but remains import-reliant for many goods and inputs. The current account balance stands at -7.5% of GDP in 2023, signaling a persistent external deficit that is typically financed by capital inflows, including FDI. Taken together, Kosovo’s economy shows growth potential supported by openness and investment, but faces challenges from unemployment, external vulnerabilities, and the need to boost domestic productivity, diversification, and savings to improve external sustainability.

Trade and Investment

Kosovo exhibits pronounced trade openness, with exports comprising 41.9% of GDP (2024) and imports accounting for 72.3% of GDP (2024). This structure indicates strong integration with regional and international markets but also a heavy reliance on imported goods, machinery, and inputs, which increases exposure to global price movements and supply chain disruptions. Foreign direct investment (FDI) net inflows are sizable, at 8.68% of GDP (2023), signaling robust investor interest and potential for technology transfer, capital formation, and job creation. However, the overarching current account deficit of -7.5% of GDP (2023) reflects a funding gap created by the import-intensive economy and services or goods exports that, while meaningful, have not fully offset import expenditures. The combination of high import dependence and a strong but not all-encompassing FDI pipeline suggests a path toward structural reforms: continue to attract high-quality investment, diversify export baskets beyond current sectors, and strengthen domestic capabilities to reduce reliance on imports for essential goods and inputs. Strengthening the business environment, improving regulatory quality and the rule of law, and expanding export-oriented production could help transform foreign investment into sustained productivity gains and a more favorable external balance over time.

Governance and Institutions

Kosovo’s governance indicators portray a challenging institutional environment relative to global averages. Political stability and absence of violence/terrorism register a score of -0.323 in 2023, while regulatory quality sits at -0.295 and rule of law at -0.311. Control of corruption is -0.185, and government effectiveness is -0.0801. On the governance scale used by the World Bank’s Worldwide Governance Indicators, these negative values point to perceived weaknesses in political stability, regulatory environment, judicial enforcement, and public administration, albeit with a tendency toward modest improvement relative to extreme lows in some comparator regions. The proximity of these scores to zero suggests that Kosovo is not in outright crisis territory, but it faces significant governance headwinds that can dampen private investment, hinder public service delivery, and slow reform implementation. Strengthening the rule of law, reducing regulatory fragmentation, and curbing corruption would likely boost business confidence, improve credit access for firms, and enable more effective public investments in infrastructure, health, and education. The observed level of foreign investment despite governance challenges also underscores the importance of continuing reforms and international engagement to attract sustainable capital and ensure that investment translates into higher productivity and shared prosperity.

Infrastructure and Technology

Direct indicators of infrastructure and technology are not detailed in the dataset, but several proxies reveal the environment in which Kosovo’s economy operates. A high import share of GDP (72.3%) alongside exports at 41.9% of GDP points to substantial reliance on foreign inputs and connectivity to regional supply chains, implying ongoing needs for energy, transport, digital infrastructure, and logistics capabilities. The solid rate of foreign direct investment (8.68% of GDP) signals investor interest in upgrading productive capacity, potentially bringing new technologies and production processes into the economy. Moderate inflation (1.62%) reflects macro stability that supports investment planning, while governance weaknesses may impede large-scale infrastructure program execution or regulatory reforms needed to accelerate digitalization, energy transition, and transport modernization. The combination suggests a priority on improving regulatory quality and rule of law to maximize the effectiveness of infrastructure spending and leverage technology adoption across sectors, including energy, manufacturing, and services.

Environment and Sustainability

Explicit environmental indicators are not provided in this dataset, limiting a precise sustainability assessment. Nonetheless, the macroeconomic and demographic picture offers context for environmental planning. Kosovo’s economy is open and importer-dependent, with external financing dynamics shaped by a current account deficit and substantial FDI inflows; such conditions create opportunities and risks for sustainable development. Population pressures, migration patterns, and health indicators imply a need for resilient public services, climate-smart infrastructure, and energy security to support the population as it urbanizes and modernizes. Achieving sustainable development would likely require targeted investments in renewable energy, energy efficiency, and climate adaptation, complemented by governance reforms that reduce regulatory barriers and enhance project implementation. In the absence of explicit environmental metrics, Kosovo’s path to sustainability will rely on aligning growth with resource efficiency, reducing vulnerability to external price shocks, and ensuring that investment flows contribute to long-run ecological and social resilience.