Economy

Currency: EURO

Gross Domestic Product (GDP):

In 2008: 3,804 bn Euro; GDP growth rate: 5.4%;

GDP growth comes mostly from private sector.

Inflation:

Since 2004 close to 0 percent; 2009: 7.2%.

Financial Sector:

Two tier banking system consisting of Central

Banking Authority of Kosovo and 8 private banks,

10 insurance companies and 2 pension schemes.

Enterprises:

87,960 SME in 2008; 500 Socially Owned Enter-

prises of which 300 already privatized.

Budget: In 2009 totalling 1.430 bn Euro.

Tax System:

VAT 16%, Corporate Profit TAX 10 %, Wage Tax

progressive max. 10%.

Tariff duties:

Customs duties: 10% on imports; Excise tax on

fuel, tobacco alcohol and luxury goods. No duties

and taxes on exports.

Free trade:

Customs-free access to the EU market based on

the EU Autonomous Trade Preference (ATP) Re-

gime, Central European Free Trade Area – CEFTA,

Free Trade Agreement with US.

Labour market:

Average wage 242, multilingual, skilled and well

educated work force.

Location factors:

Competitive and well educated workforce,

enviable natural resources (mining, agriculture),

low taxes and a transparent tax system, high

purchase power through remittances (app. 400

million annually), customs free access to the EU

market and CEFTA members market as well as US

market.