Economic Growth
Goal
To increase private sector-led economic growth
Background
USAID promotes economic growth in Kosovo through a comprehensive strategy that concentrates on;
- stimulating private sector growth;
- strengthening the economic institutions that ensure fiscal sustainability;
- establishing a reliable energy supply.
While past USAID strategies emphasized capacity building in Kosovo’s economic institutions, the new strategy is heavily focused on private sector development and improving the business enabling environment.
USAID invests heavily in Kosovo’s economy by supporting the Private Sector and creating am improved business operating environment.
Approximately 40% of Kosovo citizens are unemployed (youth unemployment is estimated to be 50% to 75%), while 45% live below the poverty line. 30,000 new workers enter the labor market every year and compete for an estimated 3000 new jobs. It would take economic growth in the range of 7% over a 15 year period to cut the unemployment rate in half; actual GDP growth was 4-5% in 2009 and 2010.
Kosovo is still largely isolated from the world economy and remains heavily dependent on foreign aid and remittances, with the World Bank estimating that remittances have ranged from 13-15% of GDP in recent years.
Kosovo suffers from an unreliable energy supply, an unfriendly business enabling environment, poor infrastructure, and an inexperienced workforce. Kosovo is also highly dependent on imports, estimated at 44% of GDP in 2009, with exports of only 4% of GDP. Historically, Kosovo had significant agricultural output, however a significant amount of arable land is in meadows, pastures, or lies fallow.
Current activities
Increasing Private Sector Growth and Investment
USAID works to stimulate private sector competitiveness and improve the business enabling environment in Kosovo. Activities focus on ...
continue reading
Economic Institutions Ensure Fiscal Sustainability
Since 1999, USAID/Kosovo’s economic policy and institutional strengthening programs have focused on establishing key central economic institutions and the legislative and administrative framework for a free market economy. USAID is supporting public-private partnerships (PPP) at ...
continue reading
Energy
The lack of a reliable energy supply is the principal impediment to private sector development and economic growth in Kosovo. The electricity sector is also a major drain on the national budget due to ...
continue reading
