The Kosovo Business Association has responded to the World Bank’s report on the worsening economic climate. Through a statement, the LBK has called for institutional action to improve the economic situation. Kosovo’s economic growth, projected at 4.4% for 2024, is expected to decline to 3.8% for 2025, 2026, and 2027.
The full version states: Our concerns about the deteriorating economic climate are no longer warnings; they are a reality confirmed by the World Bank. Immediate actions, a clear vision, and sincere collaboration between the state and businesses are needed now more than ever. If the economy collapses, everyone collapses!
The Kosovo Business League (KBL), representing local businesses and producers, has repeatedly expressed concern over the progressive deterioration of the country’s economic climate. These concerns are confirmed today by the World Bank’s latest report, “Global Economic Prospects” (June 2025), which revises Kosovo’s economic growth projections downward, indicating a more fragile outlook and new challenges for macroeconomic stability.
According to the report, global economic growth in 2025 is expected to slow to 2.3%, due to growing international uncertainty, weakening demand, and geopolitical factors. In line with this trend, Kosovo’s economic growth, forecast at 4.4% for 2024, is also expected to decrease to 3.8% in 2025, 2026, and 2027, a clear sign of weakening development momentum.
This economic slowdown coincides with an increasingly complex internal climate for the private sector. Recent decisions by the Energy Regulatory Office (ERO), including electricity tariff hikes and interventions in the free energy market, as well as warnings of property tax increases starting January 2026 by over 270%, are placing a heavy burden on businesses, especially manufacturers.
LBK emphasizes that these measures, adopted without deep fiscal reforms and long-term development strategies, directly endanger the sustainability and competitiveness of the private sector.
In response to this situation, the Kosovo Business League calls for an integrated and coordinated approach between state institutions and the private sector. Creating a sustainable alliance, based on transparent dialogue, reliable data, and common development goals, is necessary for effective crisis management and ensuring economic stability.
LBK requests:
Immediate suspension of the ERO’s decision to increase energy tariffs, at least until January 1, 2027, providing a reasonable transition period for the private sector;
Development of a comprehensive energy strategy, based on direct consultations with the business community, balancing fiscal sustainability needs with the economy’s development capabilities;
Review of fiscal decisions directly affecting the investment climate and the functioning of manufacturing and commercial businesses.
Legislative changes related to the economic sphere.
The Kosovo Business League reaffirms its commitment to being an active partner in the economic policy formulation process and invites all public institutions to build a true, long-term, and transparent partnership as a basis for maintaining macroeconomic stability and advancing the country’s sustainable development.
— new from Gazeta Express