Caritas Switzerland in Kosovo

The economic growth outlook of Kosovo remains positive. However, despite the creation of new jobs in 2016, the country needs to make economic growth much more reliant on higher productivity at home and greater competitiveness abroad. Kosovo has a long way to go, and should make significant progress in cutting fiscal deficits, tackling the legacy  of a large and ineffective state, and improving the environment for domestic and foreign investments (World Bank Regular Economic Report).

Unemployment remains a key challenge. The official estimate is at 35%, but the real unemployment is believed to be considerably higher. The difficult labour market conditions affect youth and women disproportionately and present a serious risk of undermining the country’s social fabric. Kosovo remains one of the poorest countries in Europe, with a  per-capita GDP of 3’196 EUR. Around 30% of the population live below the national poverty line, and 13% are stuck in extreme poverty.

Kosovo Roma, Kosovo Ashkali, and Kosovo Egyptian children experience low school enrolment, and high dropout rates, especially among girls. Several factors contribute to this situation, including extreme poverty rates among these communities, low levels of education and low awareness of the importance of education, inter-ethnic tensions, discrimination, and a lack of teachers of Roma, Ashkali and Egyptian origin.