3.5% Kosovo’s Economic Growth in 2007

Prishtinë, July 15, 2008 – The Central Bank of the Republic of Kosovo, in its annual report released yesterday stated that the economic growth in Kosovo during 2007 was 3.5%.

“In 2007 [while it was still under UN protectorate], Kosovo had a real economic growth of 3.5% due to the growth of the private sector and due to a higher level of private investments. While in the same year, the inflation was recorded at a rate of 4.4%. In 2005 and 2006, there was a controllable level of low inflation, however last year’s high rate of inflation is explained by the rapid increase energy and food prices in the world market,” said the Chairman of the Central Bank of the Republic of Kosovo, Mr. Hashim Rexhepi.

Regardless of inflation, the consolidated budget of Kosovo for the year of 2007 has recorded a surplus balance of 233.7 million euros (or 9.8% of GDP), which is mainly attributed to the increased sale of assets.

Rexhepi also gave a detailed evaluation of the banking sector.

As an important institution of the financial sector, banking continues to remain a dominant factor, reaching a 90% share of the finance industry.

Also, during 2007, there has been a continuous increase in credit loans, mainly in mortgage, business and personal loans, noting a 40% increase. Deposit savings have been increased by 24%. The ratio of loans versus deposits, by the end of 2007, was at 78%.

“The banking sector has recorded a high level of earnings during 2007,” said Rexhepi.

ECIKS / Source: New Kosova Report, Koha Ditore