KOSOVO - The European Times

Improved Stability and MeasuredGrowth Point to a Maturing EconomyWhile independence was only achieved in February 2008,Kosovo has been pursuing a stable and fruitful economicpolicy for some time now. This has been borne out bythe increasingly impressive figures for both GDP growthand the budget. Indeed, the country is creeping towardsSoutheast European (SEE) levels of growth while stillmanaging to balance the books. Under the stewardshipof the European Union, the country has been able toresist the temptation to overreach itself while ensuringthat many sectors have been liberalised and export-orientatedindustries have been unshackled. However, thisis still a work in progress and the government has setambitious targets to further stimulate the economy overthe coming five years.In 2007, the country recorded GDP growth of 3.5%slightly below the SEE average of 5.9% but a clearincrease on growth in 2005 which stood at 0.3%. Thistranslated into a GDP figure of €2.4 billion and anever improving GDP per capita of €1,400. This wasachieved despite a decline in the donor sector. Moreimportantly, this growth was not boosted by publicexpenditure but by the expanding role of the privatesector in economic life. In 2006, non-housing privateinvestment increased by 61% while banks loans tothe private sector also increased markedly.Indeed, the economy has become less reliant ongovernment and donor sector expenditure. Donorsector expenditures, in terms of consumption andinvestments fell 1.7% in 2007 amounting to €355million or 14.4% of GDP. Government spending ongoods and services fell 8.3% in 2007 although after a20