Kosovo’s trade deficit reaches six billion euros, exports to the U.S. drop from 200 to 20 million

Kosovo ended 2024 with yet another negative trade balance, as its trade deficit rose by 7.4 percent compared to the previous year, reaching approximately six billion euros, Indeks Online reports.

Data from the Kosovo Agency of Statistics (KAS) indicates a continued widening of the gap between imports and exports, while economists warn of serious consequences unless the government changes its economic direction.

Economist Medain Hasani views the situation as a direct result of a lack of support for local producers and poor foreign investment attraction.

“The reasons for the trade deficit include a massive increase in imports at the national level. From the start, Kosovo’s economy has faced an extremely negative trade balance, and in 2024, this deficit reached around six billion euros. Nationally, we must focus on attracting foreign investors, boosting production, and replacing imported goods with local products. The current policy implemented by the Government of Kosovo is deeply flawed, and the lack of subsidies for manufacturing companies has led to high import levels. Additionally, the global rise in prices has significantly contributed to this high trade deficit, which is continuing into 2025. These are some of the factors that led to this negative trade balance,” Hasani stated.

He believes that the lack of domestic production and the weakening of export capacities have created a dangerous economic spiral. He also points out that exports to the United States have plummeted.

“We used to export around 200 million to the U.S.; now it’s about 20 million. This shows that not only are manufacturing enterprises not being subsidized, but product development and export growth in Kosovo are severely hindered. A government without a clear plan for economic development creates this kind of situation. Without production and exports—areas that were once supported but are now being obstructed—there is no foundation for growth. This has led to a very low export level, roughly 14.8 percent compared to imports, which far outweigh exports. These are some of the factors that have hampered development,” he said.

According to Hasani, the situation has further worsened following the liberalization of the energy market, which began on June 1 this year. The high cost of energy, he explained, has slowed down the operations of manufacturing companies.