Kosovo’s gross domestic product (GDP) expanded by a real 4.7% y/y in the second quarter of 2018, speeding up from a 3.5% growth in the previous quarter, estimated data from the Kosovo Agency of Statistics (KAS) indicated on September 28.

The growth was boosted mainly by the strong performance of the financial and insurance sector, which was also the case in the previous quarter. The World Bank projects that Kosovo’s economy will expand by 4.8% this year. Kosovo posted GDP growth of 3.74% in 2017.

Kosovo’s nominal GDP in current prices amounted to €1.675bn in 2Q18, compared to €1.299bn in the previous quarter.

The biggest increase in 2Q18 was registered in the financial and insurance activities sector (33.1%), followed by mining and quarrying (6.5%), wholesale and retail trade (5.6%), construction (5.2%), transportation and storage (5.1%), public administration (5.0%), accommodation and food service activities (3.5%), real estate (2.0%), agriculture, forestry and fishing (0.9%) and manufacturing (0.2%).

The electricity, gas, steam, air conditioning and water supply sector contracted by 4.2%.

GDP according to the expenditure approach increased y/y in 2Q18 in export of goods and services (12%), import of goods and services (11.7%), the gross capital formation (12.2%), government final consumption (4.7%) and household final consumption including non-profit institutions serving households (4.4%).