Kosovo’s economy grew by 4.27% in the second quarter of 2024, decelerating from a 5.62% increase in the previous quarter (chart), statistics office data indicated on September 20.

Despite the slowdown, this represents a stronger performance compared to the same period last year, when the economy expanded by 3.34%.

Key sectors contributing to the Q2 growth included a robust performance in the industrial and service sectors.

The most significant rise was seen in the extractive industry, processing, utilities, and waste management activities, which surged by 8.26%. Information and communication also posted a solid increase of 4.21%, while the manufacturing industry grew by 3.77%.

Other sectors that contributed positively to the economy included wholesale and retail trade, transportation, accommodation, and food services, which collectively grew by 3.24%, and scientific, professional, and technical services, which rose by 3.55%.

Agriculture, forestry, and fishing showed a more modest increase of 2.08%, while the construction sector recorded a 1.23% rise.

On the expenditure side, household consumption climbed by 7.04%, while exports of goods and services increased by 7.84%, slightly outpacing the 7.75% rise in imports.

Gross capital formation rose by 2.98%. However, government final consumption expenditures saw a decline of 1.55%, reflecting tighter public spending during the quarter.

Kosovo finance minister said that after the slowdown and reduction of inflation now below 2%, which is the goal of the European Central Bank, businesses and the country's economy are returning to the trajectory of faster economic growth, where they started after the pandemic.

He added that this is a signal that the government's policies to support farmers and manufacturing businesses, and employment support measures are working.