Ismaili: Foreign direct investment in Kosovo will exceed one billion euros this year

Governor of the Central Bank of Kosovo Ahmet Ismaili said that Kosovo’s economy remains highly dependent on imports, but that foreign direct investment is recording significant growth and is projected to exceed one billion euros this year.

Speaking to Kosova Press, Ismaili said that in the first nine months of last year foreign direct investment in Kosovo amounted to around 730 million euros, and that according to projections it is expected to total about 950 million euros in 2025.

“Even so, with data through September this represents growth of around 20 percent compared to the previous year. For 2026, we project that the volume of foreign investment will exceed one billion euros,” Ismaili emphasized.

The governor of the Central Bank of Kosovo said that economic growth last year is estimated at around four percent, while growth of about 4.1 percent is projected for this year.

“Let me stress that the CBK makes its own independent projections, based on its indicators and analyses, and forecasts that 2025 will end with growth of 3.9 percent or approximately four percent. For 2026, growth of around 4.1 percent is projected,” he said.

Speaking about developments in foreign trade, Ismaili emphasized that Kosovo’s economy continues to be characterized by a high dependence on imports, while exports have slowed.

According to him, a 14.7 percent increase in imports has contributed to a deepening of the trade deficit, which has risen to seven percent of Kosovo’s gross domestic product.

“Due to structural problems, Kosovo’s economy remains predominantly dependent on imports. In the past year we even saw a slowdown in exports, which occurred mainly because of a number of isolated factors, while imports continued to grow. Thus, imports increased by about 14.7 percent, leading to a further deepening of the deficit, which stands at around seven percent of GDP or more,” Ismaili said.

He stressed that until exports are strengthened – which can depend on many factors – import dependence will continue to dominate, which certainly requires certain policies that are, as he said, beyond the remit of the Central Bank.

According to him, remittances from the diaspora continue to grow and are expected to reach a high level by the end of the year, with positive projections for next year as well.

“According to the data we have for October, remittances amounted to around 1.05 billion euros. We expect remittances to reach about 1.4 billion euros in 2025, which would represent growth of around 3.8 percent. We project similar growth this year as well, around 3.5 to four percent,” Ismaili emphasized.

He added that he is optimistic that Kosovo could become part of the Single Euro Payments Area (SEPA) this year.

Recalling that the Central Bank of Kosovo applied for SEPA membership at the end of the year before last, he said he remains optimistic that Kosovo could become a member this year.