Despite that in the last years, Kosovo has experienced economic growth,
it still remains the least developed country in Europe. Kosovo’s economy
is still fragile. During 2009 Kosovo’s economy peaked at 4.0% while
during 2010, economic growth achieved 4.6%, while the GDP was
estimated to be 4.2 Billion Euros. During 2009, Kosovo’s economy was
characterised by deflation (-2.4%), during 2010 it saw a raise in
inflation, while consumer price index was rated at 3.5%. There is still a
high rate of unemployment in the labour market, about 45%, and it
remains a challenge for the country’s economy. During 2009, money
deposited from Kosovars living abroad experienced a decline of 5.6%,
where during 2010 these deposits marked a slight improvement. Trading
imbalances since the post-war period have continued in 2010, which has
created a high level of dependence of commercial deficit (deficit
constitutes about 45% of the GDP). The purpose of this study is to give a
clear view of the macroeconomic situation of Kosovo through a
comprehensive analysis and critical approach towards developments so
far, in order to improve the economic state in the future.