Djogovic: Trade flows between Kosovo and Serbia partially normalized

Trade flows between Kosovo and Serbia have been partially normalized, and the growing demand for Serbian goods compared to those from Albania is not surprising. This is due to traditional ties between businesspeople as well as significant growth potential in overall economic relations, which could also help ease political tensions, economic analyst Sasa Djogovic told Kosovo Online.

“It is no surprise that we have surpassed Albania in the first month of this year, as there have always been traditional ties and business contacts between businesspeople in Kosovo and central Serbia. These ties have never been completely severed. At times, they may have been halted or slowed down, which resulted in losses on their side as well, since they had to procure some goods at higher prices than they would have from Serbia,” Djogovic said.

He adds that the increased demand for Serbian goods in Kosovo highlights the need to open additional border crossings for their transport to enable the free flow of goods to operate at full capacity.

“It is certainly a positive development that this measure has been lifted. In this way, economic and trade flows between Serbia and Kosovo have, to some extent, been normalized. The people of Kosovo have always been accustomed to products from central Serbia since the Yugoslav era, particularly when it comes to confectionery and basic food products. Additionally, they have also purchased mineral fertilizers, various agricultural tools, semi-finished products, and machinery equipment from Serbia,” the economist explained.

He emphasizes that there is potential for further growth in trade and economic relations, which would also ease political tensions between Pristina and Belgrade.

“There are significant reservoirs of growth in trade and overall economic relations between Pristina and Belgrade, and these economic ties should help relax political relations, not only between political elites but also among the general population,” he stressed.

Djogovic is convinced that this is possible through future joint investments, particularly highlighting the energy sector.

“This could further stimulate the emergence of a new business and overall social environment, improving the quality of life for the people living there. It would undoubtedly have positive economic effects in central Serbia as well,” Djogovic stated.

He emphasizes that easing political tensions has a broader impact on the entire region.

“Any improvement in relations between Belgrade and Pristina, even in economic terms, has a positive domino effect on the whole region. Conversely, any escalation of tensions inevitably spills over into other parts of the region,” Djogovic concluded.