Semi-Annual Macroeconomic Bulletin Jan-June 2009

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MINISTRY OF ECONOMY AND FINANCE MINISTRIA PËR EKONOMI DHE FINANCA

MINISTARSTVO ZA PRIVREDU I FINANSIJE

Semi‐annual

Macroeconomic

Bulletin

(original cover to be uploaded soon)

Prishtina

2009



PUBLISHED BY Ministry of Finance and Economy

New Government Building, floor XIII

10,000 Pristina, Kosova

Tel: ++ 381 38 200 34 331

WEBSITE www.mfe‐ks.org

E‐Mail makroekonomia@mfe‐ks.org

EDITORIAL BOARD Besart

Myderrizi

Selim Thaqi

Semra Tyrbedari

Valmira Rexhëbeqaj

VOLUME 100 copies

Use of data from this publication is permitted provided that the source is cited

The bulletin is published semiannually and any correction will be made in the website

This issue

includes

data

received

by

September

1,

2009

http://www.mfe-ks.org/



mailto:[email protected]







INTRODUCTION....................................................................................................................................... 4

1. REAL SECTOR ................................................................................................................................. 51.1. DISCUSSION AND MACROECONOMIC OVERVIEW ........................................................................... 5

1.2. LABOR MARKET ...................................................................................................................... 6

1.2.1. PLACEMENTS...................................................................................................................... 6

1.2.2. REGISTERED UNEMPLOYMENT ............................................................................................... 8

1.3. PRICE MOVEMENTS.................................................................................................................. 9

1.4. SOCIAL WELFARE .................................................................................................................. 12

1.4.1. SOCIAL ASSISTANCE ........................................................................................................... 12

1.4.2. BASIC PENSION................................................................................................................. 12

2. FISCAL SECTOR ............................................................................................................................. 13

2.1. BUDGET REVENUES ............................................................................................................... 13

2.2. BUDGET EXPENDITURES .......................................................................................................... 18

3.1. DEVELOPMENTS IN THE COMMERCIAL BANKING SECTOR .............................................. 20

4. EXTERNAL SECTOR......................................................................................................................... 24

4.1. EXPORTS ............................................................................................................................. 25

4.1.1. STRUCTURE...................................................................................................................... 25

4.1.2. DESTINATION ................................................................................................................... 26

4.2. IMPORTS .......................................................................................................................... 27

4.2.1. STRUCTURE...................................................................................................................... 27

4.2.2. ORIGIN............................................................................................................................ 27

APPENDIX 1.REAL EFFECTIVE EXCHANGE RATE MOVEMENTS IN KOSOVO ...................................... 29

APPENDIX 2.ANALYSIS OF LABOR MARKET IN

KOSOVO .............................................................................. 33APPENDIX 3: TABLES.............................................................................................................................. 40



INTRODUCTION

The semiannual Macroeconomic Bulletin for the period January-June 2009 is the continuation of a series of publications produced by the Macroeconomic Department within the Ministry of Economy and Finance(MFE).

Its main purpose is to provide a comprehensive explanation on recent developments in Kosova's economy,covering issues in four main sectors of the economy. The Bulletin is deliberately descriptive in nature, sinceits main purpose is to provide a ready source of information for the reader. However, the Bulletin alsoincludes some analytical content, since the figures are understood more easily by offering a story behind them. To serve this purpose, among other things, this publication also presents two research studies withmacroeconomic focus.

Despite the effects of global economic crisis, it seems that Kosova's economy, so far has not been greatlyaffected by this crisis. Based on current projections, real growth of economy is expected to reach at about4.4%, which seems to be very encouraging if compared to countries of the region.

Following the pronounced increase in prices during 2008, the first semester of 2009 was characterized by asignificant decrease in price levels. The data up to the present suggest that during the January-June period,average annual rate of deflation was approximately -2.6 %. Based on this trend, expectations are that by theend of year average annual rate of deflation will be at 2.5%.

In terms of budget, we have witnessed a pronounced stability with a performanse in revenue collectionefforts that are quite encouraging, while on the other hand the trend in execution of planned expendituressuggests for an overall improvement in the degree of their execution.

Finally, any reader comments are welcome. Please write to us regarding any comments, observations and suggestions in our e-mail address: [email protected], or phone +381 38 200 34 331.

Editorial board





1. REAL SECTOR

1.1. DISCUSSION AND MACROECONOMIC OVERVIEW

During the first half of 2009, Kosova's economy has shown some resistance toward changing globalmacroeconomic environment which has been characterized by a significant lack of liquidity and only a few signsof economic recovery.

Based on most recent economic projections, real GDP growth for 2009 is expected to be at 4.4%. Thisreassessment comes after reviewing the initial growth projection of 4.1%, taking into account new data for thesix month period, as received from the real sector, and based on fiscal trends after reviewing the 2009 budget.

In 2009, it is expected that consumption and investment are again two main contributors to economic growth.Consumption continues to have the same upward trend, while at the same time the total investment hasincreased. Increased investment has significantly been affected by increased capital investment financed from

Government budget. But it should be noted that in light of global economic crisis, exports have been declining, but as a result of their low base the impact of this decline in economic growth will not be very pronounced.

On the other hand, fall in exports has contributed to further deepening of the trade deficit. This growing deficitcontinues to be an obstacle to accelerated economic growth, and represents a constant concern for macroeconomic stability.

In summary, it is fair to say that economic activity in Kosova for the first half of 2009 has been relativelyencouraging, despite serious shocks in the global economy.



1.2. LABOR MARKET Given the limitations in labor market data, a comprehensive analysis of this sector is quite challenging. However,for the purposes of this publication, and for the presentation of a solid overview of developments in the labor

market, two different sources of data have been used.

An important source of information on the labor market, are the data collected through Employment Officeswithin the Ministry of Labor and Social Welfare. However, it should be noted that the figures presented in thissection are only administrative or recorded data. The recorded employment data are not to be considered anaccurate indicator of overall employment in Kosova, since a large part of employment takes place outside theemployment offices. On the other hand, it is not uncommon for individuals to register as unemployed with theaim of obtaining social benefits, even in cases where they might already have a job in the informal sector.

Whereas, a second source of information about employment is the official data on registered taxpayers and declared official salaries. However, it is worth mentioning that these two sources of data do not provide anoverall insight into the labor market in Kosova, however, for the purposes of this publication these will be used as complementary data to present an approximate overview of the developments in the labor market.

1.2.1. PLACEMENTS According to registered data by the Ministry of Labor and Social Welfare, the total number of placements, fromthe beginning of 2009 until the end of June 2009, has reached 3.098, marking an increase of 22% compared tothe same period of 2008.

One of the reasons for this positive trend is thought to be the larger number of new jobs that are offered duringthis period on the one hand and a lower level of entries / records on the other hand. However, this does notenable us to tell that there may be a decrease in the overall level of unemployment in the country. The datasuggest an average reduction in the cumulative rate of new entries / new recordings by 6.2% as it was in lateJune of 2008, to 4.27% at the end of June 2009, and at the same suggest for an increase in annual average

employment with mediation from 1.7% as it was during the first half of 2008, to 1.9% during 2009. In addition,during this period an increase was recorded in the cumulative average rate of new registered jobs from 1.78% to2.3% in 2009. In this context, the total number of new employments mediated through the employment officesduring the first half of 2009 was 3.098, whereas the total number of new persons that are registered asunemployed during this period was 2.592.

This increase in the number of employed with mediation may be due to continued growth of economic activity inthe country also during the first half of 2009. In particular, a portion of this increase may come as a result of continued implementation of a considerable number of public works driven by the large growth of capitalexpenditures made from the budget of Kosova, which occurred in late 2008 and has continued for this period of 2009. A considerable part of these capital expenditures are oriented toward infrastructure improvements and in

particular the road infrastructure, which has enabled higher than usual activities in construction companies in thecountry. In addition to public investments, it is estimated that there is also a growth in private investment.

Among other things, this is evidenced by the significant increase of loans for the construction sector, where loansfor this sector increased by about 20% compared with year-end 2008.

Regarding employment by sector, similar to other periods, the highest number of employment was recorded inthe trade sector. Employment in this sector has reached about 34.8% of total employment with mediation. Such astructure of employment also reflects the structure of registered companies in Kosova, where most of them areinvolved in trade and services activities, where almost all of them are registered as micro or small enterprises.Compared to the same period of last year, there was a significant decrease in the percentage of employment insectors such as trade, production and education, whereas this decrease was offset by significant employmentgrowth in sectors like construction and agriculture in particular, and also in forestry. During this period, a



marked increase in employment was noted in the sector "Agriculture and Forestry", where the participation of employment in this sector as a share of total employment during this period rose to 22.3% from 9.6% as it wasduring the same period of the last year.

Manufacturing

16.6%

Trade

34.8%

Education

4.3%

Hotels and

Restaurants

11.4%

Finance

1.4%

Agriculture and

forestry

22.3%

Other

16%

Construction

9.3%

S1 2009

Manufacturing

Education

5.5%

Finance

1.5%

Agriculture

and forestry

9.6%Construction

8.9%

Trade

37.9%

Hotels andRestaurants

11.5%

Other

16%

S1 2008

Figure 1.1 Placements in Selected Sectors, cumulative as of end period

Source :Ministry of Labor and Social Welfare

Analyzed in terms of education, historically it was reported that the registered unemployed with higher educationhave better opportunities to find a job. According to the reports, employment rate is much higher for people withhigher education. For example, at the end of June 2009, cumulative annual rate of employment, defined asemployment in relation to the current number of registered unemployed, for unskilled persons was 1.40 %,whereas for those with a university degree it was 19.9 % and at 2.69% for those with high school. Therefore,

people with more years of education and professional training are in a more favorable position to find work.

Since the data presented above represent only one side of the developments in the labor market, to present amore comprehensive overview of developments in this sector another source of data used are those from the TaxAdministration of Kosova. The data from this source represents the number of declared employees and their average salary for each sector.

According to the data provided by Tax Administration, as of June 2009, the average number of registered employees was about 200,000 with an average salary around € 280. About 40% of these employees areemployed in the public sector and receive an average monthly salary of about €250. The average salary hasincreased compared to the same period of last year following the introduction of a 10% salary increase for allcivil servants, not in including education workers, and this increase is applied from 1 January 2009. In addition,an increase was recorded in the salaries of teachers, which in average have increased by about 30%

Viewed from the sector perspective, still the largest number of employees continues to be within the wholesaleand retail trade sector. Analyzing the number of employees as well the average salary level in this sector, one cansee that there have been some improvement trends. Back in 2004 this sector used to employ an average of 19.000

people with an average monthly salary of about €180, whereas in 2008 employment in this sector reached about24.000 people, with an average monthly salary of about €226; during the first semester of 2009, there were about25.550 employees employed in this sector with a monthly average salary of about €220.

One other sector which is considered to be successful is that of financial intermediation, which includes financialinstitutions such as banks, microfinance institutions, and insurance companies. The number of employees in

banks and other financial institutions is also gradually increasing. This number has increased from 2.700 in 2004,to over 4,500 during 2008. Even during the first half of 2009, the number of employees in this sector remains ataround 4, 550, with a share of about 3% in the total number of declared employees. It should be noted thatcompared to other sectors of the economy, the average monthly salary in this sector is significantly higher compared with other sectors, and that during this period is reported to be around €850. However, it is importantto note that this average wage is inflated by the salaries paid to senior staff and middle management in theseinstitutions. Otherwise, the average salary in this sector, excluding cases of higher wages, is estimated at around



€ 400-500. This trend of increased number of employees in the banking sector and other financial institutions isalso supported by increased activities in banks, insurance companies, and other microfinance institutions. It isimportant to stress that despite the global financial and economic crisis, the banking sector in Kosova during this

period has remained stable.

Other sectors that have shown an increase in the number of employees are processing industry and construction.

The processing industry which includes the food industry, beverages and tobacco, textile industry, wood industry, paper, chemical and metallurgy, during the first half of 2009 on average has employed about 19.000

people on a monthly average salary of €230. The share of employment in the processing industry sector in thetotal number of declared employees is about 11%.

Whereas about 7.500 people were employed in the construction sector with an average monthly salary of € 263.It should be noted that despite increased activity in the construction sector during 2008 and 2009, no major changes have been observed in the number of declared workers in this sector.

1.2.2. REGISTERED UNEMPLOYMENT

Based on the data on the number of registered unemployed, the cumulative number of people registered as

unemployed as of end June 2009 reached 338.534. Although unemployment remains a serious economic problem, as shown in Figure 1.2 below, the growing trend of registered unemployed, starting from the lastquarter of 2007 onwards has remained stable, with no marked increase.

310

315

320

325

330

335

340

T4 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2

2005 2006 2007 2008 2009

Registered Unemployment, cumulative as of end of period, in thousands of personsFigure 1.2

Source:Ministry of Labor and Social Welfare

In terms of educational level, the structure of registered unemployed is very unfavorable. Similar to other periods, unskilled labor force represents the largest number of unemployed. Over 60% of the registered unemployed are unskilled, followed by those with secondary education. However, as evident from the figures,the average outflow rate for those unemployed and who possess a university degree and high school diploma ishigher, which means that the risk of remaining unemployed for those with higher education is lower.

Another issue of concern is the duration of unemployment. Over 90% of the registered unemployed are long-term unemployed, which could result in serious problems for both unemployed people and for the economy as awhole. The phenomenon of long-term unemployment, explains the fact of unchanged educational structure of registered unemployed for a long period of time. This fact is very important considering that any re-employmentof this group of unemployed people is very difficult to achieve and at the same time their retraining is costly. Inthis regard, it is important to note that a considerable number of those registered as unemployed also receivesocial assistance benefits, at least for the period they were unemployed, trying to compensate in this way a

portion of the potential income they have lost as a result of unemployment.



1.3. PRICE MOVEMENTS

During the first half of 2009 prices continued to decline further, beginning with the last quarter of 2008.

Year 2009 shows that price movements have taken the opposite direction, compared with the trends during 2008.Current data for the first six months of this year show that on average, deflation has reached the rate of -2.6%,compared to an increase of 12.6% that was marked during the same period of last year.

In general, the first half of 2009 was characterized by a reduction in prices of those categories of commoditieswhich affected the sharp increase of inflation during the first half of 2008. The first half of 2009 wasaccompanied by a rapid decline in oil prices (Figure 1.3), which began from November and December of 2008.Whereas during the first half of 2008, oil prices have increased by an annual average of 22.3%, during the firsthalf of this year, these prices were reduced significantly with an annual average of -25.3%. Reduction of the

price of oil was the result of declining oil prices in international markets, which came as a result of expectationsfor a decline in demand for this product, primarily affected by lower economic growth in the majority of countries with developed industries.

Monthly year-on -year change on oil pr ice

-30

-25

-20

-15

-10

-5

0

5

10

15

20

25

30

J an Feb Mar Apr May J un J ul Aug Sep Oct Nov Dec J an Feb Mar Apr May J un

2008 2009

Oil prices%

Source: Statistical Office of Kosovo

In addition to oil prices, this period was also marked by a sharp decline in food prices, which dropped to anaverage of -4.8% compared to the same period of last year. This decline in food prices is largely influenced bythe fall in oil prices. Given that our country is largely dependent on imported products, also including food

products, the effect of such a decline is observed in our economy

An important indicator that should be analyzed is the CPI excluding prices of oil and of food products (Figure1.4). This indicator suggests that during the first half of 2009, prices of other commodities excluding gasoline

and food have increased by an annual average of 4.3% as a difference to total CPI, which showed a declineduring this period. This figure confirms the fact that deflation marked during this period was mainly influenced

by the sharp reduction of oil prices and foodstuffs.



-4.5

-2.5

-0.5

1.5

3.5

5.5

7.5

9.5

11.5

13.5

J a n F e b M a r

A p r

M a y J u n J u l

A u g

S e p O c t

N o v

D e c J a n F e b M a r

A p r

M a y J u n J u l

A u g

S e p O c t

N o v


A p r

M a y J u n J u l

A u g

S e p O c t

N o v


A p r

M a y J u n

2006 2007 2008 2009

CPI total CP I (Excluding oil and food prices)

Figure 1.3

%

Consumer Price Index (CPI), y-o-y change in %




BOX 1. Movements on tradable and non‐tradable goods prices

Analysis of price movements by categorizing the products into tradable and non‐tradable ones enables a clear

identification of the source of price movements. Tradable products include goods and services that are imported, or

that are in competition with foreign products and services, whether in the domestic or foreign market. Whereas the

non‐

tradable

products

are

goods

and

services

not

faced

with

foreign

competition.

In the case of Kosova, tradable products have greater specific weight in the Consumer Price Index, and that is up to

about 88%. These products include categories such as: food and non‐alcoholic beverages, alcoholic drinks and

tobacco, clothing, furniture and household equipment, housing, electricity, and similar. It is worth mentioning the

fact that electricity as a product is usually classified as a non‐tradable product, but in the case of Kosova, due to the

high amount of electricity consumption and imports from abroad, this product is classified in the group of tradable

products. Whereas, non‐tradable products to a large extent include miscellaneous services such as transport

services, postal services, the category of education, hotels and restaurants, financial services, cultural services,

rental services, social protection, etc.. The share of these products in the total CPI is about 12%

Based on this categorization, as shown in the figure below, starting from the last quarter of 2008, there has been a

deflation in prices of tradable products. Whereas, we have seen a slowdown in the inflation rate for non‐tradable

products. This

once

again

proves

that

the

deflation

rate

recorded

during

this

period

has

been

greatly

influenced

by

the fall in world market prices, which were reflected through imports.

Figure 1. Movements in tradable and non‐tradable goods price

-7.0

-5.0

-3.0

-1.01.0

3.0

5.0

7.0

9.0

11.0

13.0

15.0


2008 2009

Tradables Non tradables


s



1.4. SOCIAL WELFARE

1.4.1. SOCIAL ASSISTANCE

Social assistance benefits target a closed group of poor and extremely poor households. Criteria for the benefits

are defined by law. In late June 2009 it was reported that 35.773 families were benefiting from the socialschemes. Worth mentioning is the fact that despite the continued fall in the number of beneficiary families whichis recorded continuously from the second half of 2008, this trend has increased during January-June 2009. It isestimated that to a large extent this growth comes more as a result of management change than of thedeteriorating social situation in the country

As can be seen in Figure below, the upward trend during the first quarter was stabilized during the second quarter of the year. This phenomenon can be explained by the fact that a certain number of families living inmore remote rural areas have not been included in the scheme so far. Therefore, the transfer of responsibilities atthe municipal level has provided opportunities and better conditions for these families to have access to these

benefits.

30

32

34

36

38

40

42

44

J an Feb Mar Apr May J un J ul Aug Sep Oct Nov Dec J an Feb Mar Apr May J un J ul Aug Sep Oct Nov Dec J an Feb Mar Apr May J un

2007 2008 2009

2.0

2.1

2.2

2.3

2.4

2.5

2.6

2.7

2.8

2.9

3.0Number of families Payments (right axis)

Figure 1.4 Number of Families and Payments of Social Assist ance

I nmi l l i on s of e ur o

I n t h o u s a n d s o f f a m i l i e s

Source: Ministry of Labor and Social Welfare1.4.2. BASIC PENSION

The basic pension scheme is a general scheme of contributions funded by the government. Basic pension isdefined as a fixed monthly benefit that is offered to all citizens of Kosovo of over 65 years of age, regardless of

previous contributions. However, starting from March 2008, the Government of Kosova approved theadministrative direction enabling monthly payments of €75 instead of €40, for all those who have contributed tothe old pension system.



80.0

85.0

90.0

95.0

100.0

105.0

110.0

115.0

120.0

125.0

130.0

135.0

140.0

145.0

J an Feb Mar Apr May J un J ul Aug Sep Oct Nov Dec J an Feb Mar Apr May J un J ul Aug Sep Oct Nov Dec J an Feb Mar Apr May J un

2007 2008 2009

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Number of pensioners Payments (right axis) 5.5

I n

t h o u s a n d s

p e r s o n s

Figure 1.5 Number of Pensioners and Payments of Basic Pensions

I nmi l l i on s of e ur o

Source: Ministry of Labor and Social Welfare

The total number of beneficiaries of basic pension at the end of June 2009 was 138.774, with an averageexpenditure envelope of about € 6.4 million per month. Within this number, about 28.855 are pension

beneficiaries which will receive additional payments.

2. FISCAL SECTOR

Kosova has built a sound fiscal policy through which it is attempted to influence the stimulation of economicgrowth and establishment of overall fiscal stability. This policy has enabled us to ensure the financial stability asa result of significant revenue generation efforts, while with regard to expenditures we have seen improvementsand increased rates of execution of expenditures. The revenues collected still do not reflect a greater burden onthe economy, since they still are at the level of 23% of GDP. Increase in capital expenditures last year hasresulted in having the public investment as an important source of economic growth.

Maintenance of budget and fiscal sustainability is and remains the main goal in this sector. Changes in tax ratesthat were approved last year were targeted toward this goal. Since the beginning of this year (1 January 2009)Kosova has introduced the package of changes in tax rates which provide a reduction in corporate tax rate from20% to 10% and a change in the progressive rate in personal income tax from 0,5,10 and 20% at 0, 4, 8, and 10%. At the same time, in order to offset losses from the reduction of these tax rates, the increase of VAT ratefrom 15% was approved compared to previous 16%, and the increase in the excise on tobacco imports from €17to €21 per unit.

The revenues generated during this period were higher than expenditures, which has enabled a positive primary balance.

2.1. BUDGET REVENUES

The collection of budget revenues is mainly realized by two main institutions: Tax Administration of Kosova and the Kosova Customs Service. Throughout the period these institutions have shown satisfactory results in taxrevenue collections, as well as reducing the level of tax evasion.

Based on data published by the Treasury Department, budget revenues for the period January - June 2009 were €420 million euros, or about 3% higher as compared to the same period of last year. Regarding the structure of income, it is observed that during this period revenues collected at the border have been 3% higher than last year while domestic revenues were about 5% higher than in the same period of last year.



Domestic

taxes

20.8%

Border taxe

64.4%

Municipal

own source

revenues

4.8%

Non-tax

revenues

9.9%

J an-J une 2009

Non-tax

revenues

10.1%Municipal

own source

revenues

4.3%

Domestic

taxes

20.7%

Border taxes

65.0%

J an-J une 2008

Figure 2.1 Structure of Budget Revenues, in % share to total

Source: Treasury Department ( MEF)

The current structure of the economy speaks for a large dependence of the economy on imports. The fact thatmost of the indirect taxes are collected at the border, has contributed that this category of revenues still be quitehigh compared to domestic revenue collections. The revenues collected at the border constituted over 64% of

total revenue collected in this period, and this rate appears to be the same as compared to last year. Apart fromtax revenues, non-tax revenues have a special role, and their share is about 15% in the total revenues collected, ashare which compared to last year seems to be almost the same.

Border tax revenues- taxes collected at the border remains the main generators of revenues for the budget of Kosovo during the reported period (Jan-June 2009). This category of revenues has had a participation of 64% intotal revenues. Changes in tax rates have had a particular impact on revenue collection at the border. Rise of theVAT rate for one percent has positively influenced the level of revenue generated, while revenue from excise,and more specifically excise revenue from tobacco, has been significantly lower as a result of increased importsat the end of last year in order to avoid the new rates for this product. This increase in tobacco imports in late2008 has resulted in the creation of large reserves of tobacco, and as a result there was a reduction in theimportation of tobacco during the period January - June 2009.

Customs duties - Revenues from this tax during this period have reached the amount of € 39.8 million, showinga satisfactory performance, and approximately have reached the same level of revenues during the same period last year. This level of income is very encouraging when we consider the fact that the fall of prices ininternational market has had a major impact in reducing customs base for imported goods, and as a result lower revenues from customs duties. An improvement of the efficiency in Customs of Kosovo for better control of goods circulation has contributed that despite lower prices in global market, revenues are at the expected level. Itshould also be noted that after the introduction of two customs control points in northern Kosovo, which aredoing the identification of goods that cross the border, a significant part of the smuggling is reduced.



0.0

5.0

10.0

15.0

20.0

25.0

30.0

Q1 Q2 Q3 Q4

2006 2007 2008 2009

Figure 2.2

Quarters

Quarterly Collection of Customs Duty, in millions of euro

Source: Kosova’s Customs

Collection of revenue from customs duties usually is characterized by a seasonality where the first part of theyear is usually lower compared with the second part of the year. The data’s available give us understanding thatrevenues from this tax until the end of the year can reach the level of projected revenues.

Excise tax - This is a specific tax which is collected from luxury goods (oil derivatives, tobacco, alcoholic beverages, etc.). The collection of excise tax was lower than the same period of last year for about 13%.

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Q1 Q2 Q3 Q4

2006 2007 2008 2009

Quarters

Figure 2.3 Quarterly Collection of Excise Duty, in millions of euro


Collection of revenues from excise tax during the first half of 2009 has seen a slight decrease in comparison withlast year, mainly influenced from the decrease in collection of this tax on tobacco. The decrease in revenue fromtobacco is caused from the decline in imports of tobacco, which is justified by the fact that at the end of last year we had an enormous increase in tobacco imports, specifically in last two months of 2008. This has resulted incollection of stocks that are being used at this stage of the year. This decline in imports of tobacco has been more

pronounced during the first months of this year while in the coming months (April, May and June) is observed anincrease in the import of tobacco, which has affected automatically increase in excise revenue from tobacco.

Also, from the level of imports of oil and its derivatives, we have observed a slight increase of the amountimported. On the other hand, since the beginning of 2009 we started the application of excise for the motor oilimports, which resulted in the increase in excise revenue from this product. Despite this decline expressed in this

part of the year, current trends tell us that until the end of the year we will collect the level of projected incomesfor this tax.



Border VAT - the revenues collected from this tax during this period were worth € 126.1 million, whichcompared with the same period of last year are nearly 4.2% lower. This decrease in the level of this incomecomes mainly as a result of the fall of prices in international market, causing reduction of customs basis for imported goods that also means smaller income from this tax.

10

20

30

40

50

60

70

80

90

Q1 Q2 Q3 Q4

2006 2007 2008 2009

Quarters

Figure 2.4 Quarterly Collection of Border VAT, in millions of euros


Despite the fact that the VAT rate was raised from 15 to 16%, the beginning of this year could not offset lossescaused by falling prices in the global market. The decrease in the level of VAT collection is more pronounced inthe first quarter of this year, while the second quarter shows an increase in the level of revenue from this tax.Despite this decline at this time of the year, the current trend suggests that by the end of the year we will complywith the forecasts made earlier this year.

Domestic taxes - the level of revenues from this category during this period were about 5% higher compared with the same period of last year. The level of revenue collected in this period seems to be very encouraging,knowing the fact that changes in tax rates have had considerable impact in reducing tax obligations for

businesses.

Structure of domestic revenues collected during this period has undergone changes; respectively VAT revenueshave seen a decline in participation in the total domestic tax revenues.

0

5

10

15

20

25

Q1 Q2 Q3 Q4

2006 2007 2008 2009Domestic VAT collection, in millions of euroFigure 2.5

Quarters

Source: Tax Administration of Kosovo

Domestic VAT - the collection of revenue from this tax has increased during this period of the year for about30% compared to the same period of last year. This increase comes mainly due to the effects of increasing theVAT rate from 15 to 16%, as well as of comparative base where last year in the same period we had a big VAT



reimbursement. Partly this comes as a result of increased awareness of the business community to register asVAT taxpayer's. The graph above shows that the collection of VAT during this period compared to the same

period of last year increased significantly, although the figures may vary due to the continuing process of reconciliation of data’s in TAK.

Personal income tax – is charged in all types of income, not just in wages. It is charged for incomes from

business activities, incomes from employment, incomes from investments, incomes from intellectual and industrial property, incomes from rent and other. The data provided by TAK show that the collection of revenueduring the period of 2009 have been higher compared to the same period last year for around 24%.

0

2

4

6

8

10

12

14

Q1 Q2 Q3 Q4

2006 2007 2008 2009

Figure 2.6 Collections from the Personal Income Tax, in millions of euro


It is very encouraging the fact that despite lowering the rates in personal income tax, the revenues collected fromthis type of tax have been higher during this period compared with the last year.

Corporate income tax - is a tax that is charged to corporate revenues. Criteria for eligibility to this are related with the legal form of business organization rather than a turnover and gross sales, or the volume of assets as

these relate to profits taxes.

5

7

9

11

13

15

17

19

Q1 Q2 Q3 Q4

2006 2007 2008 2009

Figure 2.7 Collections from the Corporate Income Tax, in millions of euro


Revenues from this category of taxes during this period have been about 10% higher than in the same period of previous year. The increase in revenue collection from this type of tax is estimated to occur because in the firstquarter of this year payments were made by applying the old norms for this tax. If you look at developments inquarterly basis, one can note that in the second quarter we have a decrease in the level of revenue from this kind



of tax, while this mainly comes as a result of halving of this tax rate in compare to the rates at the beginning of the year.

Non tax revenues and municipal own source revenues - have had a significant increase of about 5% compared tothe same period of last year. The growth of this category of revenues is the result of improved collection of taxesand charges by the relevant institutions. It should be noted that in this period of the year, income from investment

of public money in international markets has been very small. On the other hand income from property tax wereat anticipated levels, but revenue collection from charges and other fees has seen a significant increase whichcaused that non tax revenues in general to have a satisfactory performance.

2.2. BUDGET EXPENDITURES

Execution of budget expenditures during the reported period (January-June 2009) has been quite satisfactory inalmost all categories of expenditures. This increase in degree of expenditures execution is considered to have

been a result of enhanced capacity to spend funds on time within budget organizations, as well as increased communication between MFE and spending organizations.

General expenditures during this period of the year have been at the level of € 397.13 million, which compared with the same period are higher for about 22%. It should be noted that a special impact in increased expenditureshad also the increased budget anticipated for this year, knowing also the fact that earlier in this year the salariesof civil servants were increased for 10% and increase in wages of teachers has begun to be implemented sinceSeptember of last year.

Current expenditures - during this period of the year (Jan-June 2009) they were € 317.8 million or 80% of totalexpenditure. Compared with the same period of last year, their participation in the total expenditure hasdecreased by 2 percentage points. Decrease in the participation in total government expenditures was due tosome improvements in the implementation of capital expenditures during this period.

Wages and salaries - amount to € 127 million, constituting 31% of total expenditures for the monitored period.

Compared with the same period last year, the participation of this category of expenditure has decreased by 1 percentage point. Despite the fact that we have a decline in participation costs for wages and salaries in totalexpenditures, this percentage seems to be quite high. Also, the fact that the execution of capital expendituresusually begins in the second half of the year, impacts that the participation of other categories to be very high intotal expenditures.

0

20

40

60

80

100

120

140

Wages and Salaries Goods and Services Utilities Subsidies and transferes Capital expenditures

J an - June 2009 J an - June 2008

I n m i l l i o n s o f e u r o s

Total Budget Expenditures, by economic categoriesFigure 2.8

Source: Treasury Department



Goods and services - expenditures in this category during this period of 2009 were € 64.1 million, constituting16% of total expenditures for this period. Compared with the same period of last year expenditures on goods and services were higher by € 5.8m, 2 percentage points lower in comparison with the last year as participation in thetotal general expenditures.

Subsidies and transfers - This category includes: social transfers, subsidies and transfers for public enterprises

and subsidies for certain budget organizations. Expenditures in this category during this period have been at thelevel of € 126.7 million, or about 32% of total expenditures for this period. Compared with the same period of last year, they have been 25% higher. Increased subsidies and transfers are the result of higher payments to

pension contributors in the previous pension scheme, as well as a result of the increase for 12% of all socialschemes since the beginning of this year. It should also be noted that further is continued the support for publicenterprises (mainly KEK imports on electricity).

Capital expenditures - during the first half of this year were € 79.4 million or 20% of total expenditures for this period. This amount is 35% higher than in the same period of last year. This shows that budget agencies havemade improvements in terms of implementation of capital expenditure. Experience from past years has shownthat most of capital expenditures are realized in the second half, which suggests to us that in the next stage of theyear we expect an increase in capital expenditures. Compared to the budget approved for this category of expenditures, it is noted that the degree of execution was not so high including only 18% of anticipated funds.

c

Public Order

and Safety

8.9%

Economic

Affairs

22.2%Environmental

Protection

0.2%

Housing and

Community

Amenities

1.8%

General Public

Services

18.8%

Defence

2.1%

Health

8.3%

Recreation,

Culture and

Religion

1.2%

Education

16.8%

Social

Protection

19.8%

J an-J une 2009

Defence

2.0%Social Protection

20.8%

Recreation,

Culture and

Religion

1.1%

Education

17.3%

Health

8.9%

Environmental

Protection

0.2%

Housing and

CommunityAmenities

1.4%

Economic Affairs

25.4%

Public Order and

Safety

9.2%

General Public

Services

15.2%

J an-J une 2008

Figure 2.9 Expenditures by Function of Government, in % share to total

Source: Treasury Department

Structure of expenditures by government functions reveals that best part of the Government of Kosovo budgetduring this period remains the category "Economy and others" with the participation of 22% in total expendituresfor this period. This percentage represents a very substantial difference in compare to last year, where thecategory with the highest participation in budget spending has been the social category.

In nominal terms, expenditures have increased in almost all categories, starting from the fact that the budgetamount approved in 2009 has been much higher than in last year. From this perspective we see an upward trend in all categories.

As other categories which during this period have enjoyed considerable budget support are social protectioncategories, which compounded about 20% of total expenditures made in this phase. Another category was also"general public services" with about 19% of expenditures realized at this stage



3. FINANCIAL SECTOR

The world economy has been under great economic stress since the middle of 2008. Despite the tensions frominternational markets that were expected to spill over to Kosovo as well the banking sector of Kosova during thefirst half of 2009 remained resilient and financially sound. Although banks put cautionary measures on their

lending policies, loans showed significant growth during this half of the year as well. However, the profitabilityof the banking sector remained weak during this period reflecting mainly losses from investments in securitiesand placements abroad as well as decreased spread between lending and deposits interest rates.

The banking system of Kosovo consists of seven banks. Five of banks have foreign ownership and two are withdomestic ownership. Although it is liquid and solvent, banks should increase the strength to manage successfullyany potential effects of the global financial and economic crises on the real sector of the economy which could harm to a large extent the banking sector of Kosova.

Given that Kosovo has no monetary and exchange rate policy instruments, Net Foreign Assets (NFA) of the banking sector remain as a buffering element of the economy. In other words, any fall/increase in net importswill increase/draw down the banking sector NFA in order to maintain the liquidity of the economy.

-

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

1.1

1.2

1.3

1.4

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2004 2005 2006 2007 2008 2009

-

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

CBKs/1 ODCs/2 Total NFA (right axis)

Depository Corporation s' Net Foreign Assets (NFA), in billions of eurosFigure 3.1

Source:Central Bank of Kosova 1/ Central Bank of Kosova (CBK); 2/ Other Depository Corporations (ODC) include commercial banks

Total banking sector NFA increased from €1,415 million in June 2008 to €1,453 million in June 2009. Theincrease is much slower compared to the previous year’s increases and it reflects higher government budget for 2009 combined with higher execution rate of public spending. Specifically, government deposits at CBK fell by

€44.7 million compared with same period of 2008. Similarly, commercial banks NFA fell by €16.4 millioncompared with the first half of 2008 reflecting mainly the drop in banks’ investments in securities abroad. Thismight have happened either because of lower investment income from these investments or because bankswithdraw their investments to channel them into domestic market through loans (see figure 3.1).

3.1. DEVELOPMENTS IN THE COMMERCIAL BANKING SECTOR

Financial system assets are comprised mainly by commercial banking sector. Banks are still continuing toexpand their operating network, increasing their number of branches and sub-branches by 42 which compareswith 21 new branches and sub-branches opened during the same period of 2008. The expansion in their network was accompanied with the increase in number of employees by 390 full time employees against 645 newemployees during the first half of 2008. This might suggest that the productivity in the banking sector increased with the number of employees per branch decreasing to 12 from 28 employees.



Financial statements published by commercial banks show that the banking system remains financially sound.The first half of 2009 is characterized with an increase in commercial banks assets by 20.5% against June 2008totalling €1.9 billion. The largest contribution to this growth came from loans which during the observed period rose by €17.5%. Hence, loans amounted to €1.3 billion by the end of June 2009. Similarly, deposits grew by19.7% amounting to €1.5 billion at end June 2009. During this period the ratio of loans to deposits decreased

slightly to 84.6% from 86.1% in June of 2008. This might suggest that banks released somewhat their restrictionson lending policies put during the second half of 2008 to respond to potential effects of global financial crisis.

Commercial banks’ balance sheet structure experienced several changes during the first half of 2009.Specifically, banks continued to withdraw their investments in both, securities and deposits abroad and channelled them to the domestic economy. In other words, during the first half of 2009, banks’ investments insecurities and placements abroad decreased as a share to balance sheet total by 1.5 p.p. and 0.8 p.p., respectivelycompared with the second half of 2008. Thus, the share of loans to total assets increased by around 1 p.p.reaching 66.5% which suggests that loans remain the largest contributor to the banks’ total assets and the major source of banks’ income.

On the other hand, deposits of the banking sector dropped their share to balance sheet total by 1.4 p.p. compared with end 2008 being mainly a drop on non-financial corporations’ deposits which at June 2009 represented 44.0%. Within non-financial corporations public companies comprise the largest share although their share isdecreasing continuously and is being compensated to a large extent by the increase in private companies’deposits at commercial banks.

Households’ deposits continue to comprise the largest part of total banking sector deposits and as at June 2009they amounted to €903.0 million. Deposits of households increased by 7.0% during the first half of 2009 againsttheir level at end 2008. As a result, their share to total deposits increased by 1.3 p.p. compared with end 2008 and represented 59.4% at June 2009. During this period, banks increased lending to households and this might be theresult of the introduction of new products for consumers and better and/or lower cost bank services. Loans tohouseholds rose by 10.7% compared with end 2008 comprising 24.3% of total loans or €311.2 million (seefigure 3.2).

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

Dec Dec Dec J an Feb Mar Apr May J un J ul Aug Sep Oct Nov Dec J an Feb Mar Apr May J un

2005 2006 2007 2008 2009

0

10

20

30

40

50

60

70

Loans Deposits Y-o-Y Growth of loans(right axis)

Y-o-Y Growth of deposits(right axis) %

Loans Extended and Deposits Received - Households, in millions of eurosFigure 3.2

Source: Central Bank of Kosova Other non-financial corporations or private companies dropped their deposits by 8.3% compared with end 2008making up 13.8% of total deposits. Loans granted to this sector increased by 7.4% in comparison with end 2008reaching €968.5 million by June 2009 (see figure 3.3).



0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0


2005 2006 2007 2008 2009

-20

-10

0

10

20

30

40

50

60

70

Loans Deposits Y-o-Y Growth of loans(right axis)

Y-o-Y Growth of deposits(right axis) %

Loans Extended and Deposits Received-Nonfinancial Corpor ations, in millions of eurosFigure 3.3

Source: Central Bank of Kosova

Trade continues to be the largest beneficiary in terms of loans which relates very well with the structure of theeconomy of Kosova. By June 2009, trade made up 55.2% of total loans which corresponds to an increase of

6.0% compared with end 2008. The structure within trade sector is largely represented by wholesale and retailtrade while catering and other trade represent small share in this sector.

However, the structure of loans during this period changed considerably with loans being channelled to a largeextends towards the industry sector. This mainly reflects the loans granted to the electricity sector whichincreased from €1.6 million in December 2008 to €13.8 million in June 2009. Within industry however,manufacturing of food and textile appear to be large beneficiaries of loans. Loans granted to this sector increased

by 18.2% compared with end 2008, amounting to €88.8 million.

Another significant increase is also observed in construction sector which experienced an increase by 19.4%compared with end 2008, totaling €78.3 million. This implies that construction is contributing to a large extent tothe economic growth of the economy.Agriculture still represents 4% of total loans although in volume loans granted to this sector increased by €1.5million against end 2008 to €38.9 million.

Construction

8.1%

Trade

55.2%

Other services

(financial, real

estate,etc)

17.8%

Agriculture

4.0%

Industry and

energy

14.9%

S1, 2009Industry and

energy

13.4%

Agriculture

4.2%ther services

(financial, real

estate,etc)

17.6%

Trade57.6%

Construction

7.1%

S1, 2008

Figure 3.4 Industry Structure of Loans, in % share to total


Longer term loans continue to grow and represent the largest share to total loans granted from the banking sector of Kosovo. During this period, longer term loans increased by 6.5% compared with end 2008 accounting for 67.2% of total loans. Conversely, longer term deposits comprise only 7.1% of total deposits and deposits aremainly dominated by the ones with shorter term maturity, namely those with maturities of up to 1 year.



887.9

94.4 75.5

265.3

154.7

859.9

Up to 1 year over 1 year and up to 2

years

over 2 years

Deposits Loans

June, 2009

70.7

868.5

109.4

155.0

714.7

220.0

-

100

200

300

400

500

600700

800

900

1,000

Up to 1 year Over 1 year and up to

2 years

Over 2 years

Figure 3.5 Banking sector liquidity, in millions of euros

June, 2008


The banking sector of Kosova appears to have generated very low profits during this half year. Specifically, the profitability of banks measured by return on assets (ROA) dropped to 1.1% from 2.3% at end 2008. Similarly,

the return on equity (ROE) shows a considerable decline from 20.4% at end 2008 to 14.1% at June 2009. Themain reason behind this decline is lower returns from the investments abroad (both from securities and

placements) reflecting recent decline in interest rates to respond to global financial crisis. Another reason for thedecline in banks profits is higher deposit rates that banks are offering to act in response to the increased competition in the banking sector.

14.1

20.418.8

22.5

20.1

24.7

28.7

2.3

1.1

2.6

1.9

1.51.3

1.9

10

15

20

25

30

2003 2004 2005 2006 2007 2008 2009

Annualized

1.0

1.5

2.0

2.5

3.0

ROE ROA (Right axis)Figure 3.6 Profitability ratios, in %


Concentration in the banking sector in Kosovo, as measured by the Herfindalh – Hirschman index (HHI)decreased significantly during the first half of 2009. The concentration is at the same level for assets, loans and deposits. This is because of the entrance and strengthening of new banks into the banking market, an issue thatmight have put pressure on other banks to offer better and lower cost products.



-

2,000

4,000

6,000

8,000

10,000

2001 2002 2003 2004 2005 J un-06 2007 2008 J un-09

Assets Loans DepositsFigure 3.7 Concentration in th e banking sector (HHI)


4. EXTERNAL SECTOR

The actual data for the first half of 2009 show that, within the external sector, export value has declined 39%compared to the same period of 2008. Imports had a similar value as in the same period of last year, marking aslight decline of 1.6%. As a result, the decline in exports has caused the trade deficit to rise for 3.5%.

-500

-300

-100

100

300

500

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2006 2007 2008 2009

Exports Imports Trade Balance

Figure 4.1 Trade Balance, cumulative within the quarter, in millions of euros


The decrease in export value from € 103.5 million to € 62.7 million, comparing respective semesters, together with the flow of imports in the value of € 841 million over the first six months of this year, has caused the degree

of coverage of imports with exports to fall from 12.1% to 7.5%.

It should be noted that the above mentioned movements are different if we consider the quantity of exports and imports. The volume of exports has decreased by 12% compared to the same period of last year, while importquantity has recorded an increase of 10%. Such a difference between the movement of nominal value and quantity gives us an understanding that the developments in the external sector derive from nominal movementsof imports and exports that follow changes in demand of the respective categories.

More pronounced decrease was observed in the export value of basic metals and their products reaching a valueof 60.1%, from € 67.6 million to € 26.5 million. This decrease of € 41 million represents 21% of total goods



exported in 2008. The decline in the price of nickel has influenced producers to reduce exports and stockpile the products while waiting for prices to increase in the future.

The fact that, despite the fall in exports, imports continue with almost the same pace compared with the firstsemester of the previous year, shows that the reduction on remittances of Diaspora and of foreign directinvestment, had no significant impact on the financing of imports or in the absorption capacity of the economy.

It remains worrying that the trend of trade deficit demonstrates that we have not had any significant importsubstitution, which in future would improve the trade balance. Replacement of imported goods and services withlocal ones has direct impact on GDP growth, in the rate of return from public investment and in alleviation of thedependence of budget revenues from incomes at the border.

4.1. EXPORTS

4.1.1. STRUCTURE

General decline in exports is followed by structural changes. In the first half-year of 2008, three major categoriesof exports were, in row: metals and their products, mineral products, and food products. All three of thesecategories accounted for 80% of all exports.

This order remains the same even in the first six months of 2009, but with a decrease in the level of participationof three categories from 80% to 70%. It should be noted that this decline does not come as a result of thediversification of the export base, but as a result of decline of exports in the first category, that of metals and their products.

In the first six months of 2009, metals and their products remain the category with the highest value, despite thefall for 60% of metals exports compared to the same period of last year.

Second category by percentage of participation is the category of mineral products, which in the first half of

2009 has reached the value of € 9.2 million, with an increase of € 1.26 for the respective period. The participation of this category has increased from 7.6% to 14.6%.

Food had an increase in participation, but remains equal in the value of around € 7.8 million.

The category of plastics, rubber and their products, although very small in value, has recorded an increase from €4 million to € 7.7 million, increasing participation in the overall value of exports by 8.4 percentage points. Thefigure below presents the structure of exports.

Plastics

12.3%

Base metals

and their

articles

42.4%

Skins,

leather,etc

0.8%

Other

24.3%

Mineral

Products

14.7%

Food

5.6%

Jan-Jun ̀ 09

Plastics

3.9%

Base metals

and their

articles

65.3% Skins,leather,etc

3.5%

Other

12.1%

Mineral

Products7.7%

Food

7.7%

Figure 4.2

Jan-Jun '08

Exports by Commodity Groups, in % share to total




4.1.2. DESTINATION

Until June 2008 to the EU were exported goods worth € 53.7milion. For the same period this year, this amounthas dropped to € 26.9 million. The percentage of total exports to EU has fallen from 52% in the first half of 2008to 43% in the same period of 2009.

In particular, this decline comes from the decline of exports to Belgium, where in the first half of 2008 exportsreached a value of € 21.5milion, while at the same period of 2009 this value had dropped to around € 0.02million. Increased exports to Belgium last year resulted from the export of nickel from New Feronikeli company,

but, as discussed earlier, the fall of metal prices and of demand is a major cause of the current downturn inexports, and hence fall of exports to Belgium.

Nominal decreases in exports were marked also toward Germany and Slovenia, with € 1.6 and € 3.4 million,respectively. Exports to Italy have increased from € 9.1 million, as it was in the first half of 2008, reaching a totalof € 19.5 million in the same period of 2009.

In comparison with corresponding period of last year, a decrease of € 8 million has been marked in the exports toCEFTA countries. This decline comes mainly from the decrease of exports to Serbia and Bosnia and Herzegovina in the value of € 4.4 and € 3.3 million respectively. At the same time, exports were higher towardsAlbania, at an amount of € 2.2 million compared to the first months of last year. For this six-month period exports to Albania have reached a value of € 10.8 million, and represent 17.4% of total exports.

The trend of declining exports to CEFTA has been much slower than that of exports towards the EU. Compared with the first half of 2008, exports to CEFTA have fallen by 26.7%, while those towards the EU with 49.9%. Thedecrease in exports towards the EU has made the participation percentage of exports to CEFTA increase from29.4% to 35.5%, comparing the first semester of 2008 to that of 2009.

In contrast to the same period of last year, exports have been registered towards Ukraine and U.S. at an amountof $ 4.6 and € 2.4 million, respectively.

93.8

Switzerland

3.9%

EU 51.9%

of which

Bosnia and

Hercegovina

3.7%

Other

15.5%

Turkey

1.4%

Macedonia

10.4%

Albania

8.7%

Serbia

4.5%

Greece

7.7%

Slovenia

4.7%

Italy

8.8%

Germany4.2%

Jan-June '08

Figure 4.3

Germany

4.3%

witzerland

0.8%

Albania

17.4%Serbia

0.4%

Other

22.5%

Turkey

1.7%

acedonia

13.5%

Bosnia and

Hercegovina

0.8%

EU 42.9%

of which

Slov

2.2

Greece

0.3%

Italy

29.6%

Jan-June '09

Exports from Selected Countries, in % share to total




4.2. IMPORTS

4.2.1. STRUCTURE

Compared with the first half of 2008, nominal value of imports for the first half of 2009 has faced a slight

decline of 2%, from € 854.6 to € 840.8 million.

For the level of participation, mineral products remain the first category with 14.2% or € 119 million, despite adecline of 7.2 percentage points in participation, compared to the same period last year. This is the category thatregisters the import of fuel. The decline in this category is explained by the declining prices of these products.

The second category is machinery, tools and electrical equipment with € 112m or 13.3%, followed by cars and transport which provide € 91 million. Both these categories have increased compared to the same period lastyear.

One of the most interesting developments is the import level fall within the category of fabricated foodstuffs, beverages and tobacco. After government notifications for higher tobacco excise, the imports in late 2008 were

increased and stocks of tobacco were accumulated, which has resulted in declining imports within this categoryin the first six months of this year.

In general, besides the fall in the value of oil imports and imports of tobacco, imports of other categoriesremained stable compared to the same period of 2008. Increase is marked in categories with lower participationas wood and its products or the plastic and rubber. For a summary of the structural break down of imports, seethe table below.

Prepared

foodstuffs,

bev.; tobacco

10.3%

Mineral

products

14.2%

Products of

chemical or

allied

industries

6.5%

Mach. and

mech. appl.,

electrical

equip.;

13.3%

Base metals

and their

articles

7.2%

Vegetable

products

5.4%

Vehicles and

transport

equipment

10.8%

Plastics;

rubber etc

5.5%

Other

26.8%

Jan - Jun '09

Other

19.5%

Vehicles and

transport

equipment

6.3%

Vegetable

products

6.5%

Base metals

and their

articles

9.3%

Mach. and

mech. appl.,

electrical

equip.

12.6%

Products of

chemical or

allied

industries

Mineral

products

21.4%

Prepared

foodstuffs,

bev.; tobacco

12.6%

Plastics;

rubber etc4.3%

Figure 4.4Jan-Jun '08

Imports by Commodity Groups, in % share to total


4.2.2. ORIGIN

The highest value of imports for this period originated from EU. The percentage of imports coming fromthe EU has increased from 35.7%, up to June 2008, to 37.4% at the end of June 2009. For this period, thevalue of goods imported from the EU was € 314.7 million.

Imports from Germany increased for € 28.9 million, reaching a total of € 109 million for the first six-month period in 2009. The value of imports from Germany remains high in comparison to other countries of theEU. Following the import from Macedonia, which is the largest exporter to Kosovo, Germany ranks second compared to the value of imports coming from other trading partners.



On the other hand, imports from France and the Netherlands have almost halved compared to the same period of last year.

Imports from CEFTA countries have fallen to € 37.8 million, from € 327.8 million as it was in the first sixmonths of 2008 to € 289.9 million by June 2009. The share of imports from CEFTA in total imports hasfallen from 38% to 34% for the respective periods.

The decrease in imports from CEFTA is attributed to nominal declining of imports for € 41.8 million fromMacedonia, namely from € 168.5 to € 126.8 million. Macedonia continues to be ranked first among thecountries exporting to Kosovo. There were also many minor increases in imports from Bosnia and Herzegovina, Croatia, and Serbia, offsetting the decline of imports from Macedonia.

From "other" countries, the percentage of import participation from these countries in total imports isalmost the same compared to the first six months of 2008. There was an increase of imports from China for around € 10 million, from € 47 million to € 57 million.

The break down of imports by country of origin for the first six months of 2008 and 2009 is presented graphically in the figure below.

Greece

4.3%

Other

13.3%

Germany

10.8%

Albania

3.1%

EU 36.7%

of which

Serbia11.3%

Montenegro

0.8%

Croatia

2.8%

China

6.8%

Bosnia and

Herzegovina

2.1%

Macedonia

16.8% Turkey

6.4%

Bulgaria

3.1%

Italy

3.8%

Jan-Jun '09

Montenegro

1%

EU 35.4%

of which

Serbia13.6%

Germany

9.4%

Italy

3.5%

Bulgaria

2.5%

Turkey

5.8%

China

7%

Croatia

2.6%

Bosnia and

Herzegovina

2.0%

Macedonia

14.8%

Albania

2.1%Other22.6%

Greece

3.5%

Jan-Jun '08

Figure 4.5 Imports from Selected Countries, in % share to total




APPENDIX 1.

REAL EFFECTIVE EXCHANGE RATE MOVEMENTS IN

KOSOVO Semra Tyrbedari

Macroeconomics Department-MEFJuly, 2009

This brief examines the level of Kosovo’s competitiveness relative to its trading partners. The

conclusion is that by the end of 2008 Kosovo increased its level of competitiveness against its

trading partners, including the euro area countries, by 11.0% compared with 2003.

1. INTRODUCTION

The focus of this brief is to measure the real effective exchange rate (REER) and hence show themovements of the level of international competitiveness of Kosovo. First, a measure of the nominaleffective exchange rate (NEER) is constructed, to judge on average weather there has been depreciation or appreciation of euro relative to the currencies of Kosovo’s trading partners. However, since this measuredoes not make any allowances for the differences in price of goods between countries, we made anadjustment to obtain a measure of the REER.

The real effective exchange rate is very important indicator for measuring the real competitiveness of acountry as well as macroeconomic conditions in an open economy. In theory, it is usually very easy tomeasure the real effective exchange rate as it depends on the nominal effective exchange rate and effective

relative price levels. However, in practice when measuring REER we had to make a large number of choices including: a) how many countries are to be compared, b) which price indices are to be used and c)which weights are to be used.

The conclusion of this brief is that Kosovo has slightly increased its level of international competitivenessduring the period between 2003 and 2008. In other words, Kosovo’s real effective exchange rate hasdepreciated by 11%.

II. DATA AND METHODOLOGY OF CALCULATION

Real effective exchange rate may be considered as the most important relative price measure for small openeconomies and it is usually used as an indicator of the international competitiveness of a country. There are

different ways for measuring the REER which depends on the policy objectives and the availability of datafor measuring it.

For the purpose of measuring REER for Kosovo, we had to identify a range of foreign countries to becovered as trading partners, the weighting scheme and price indices to be used.

In compiling REER, trading partners were selected on the basis of their relative importance in Kosovo’s bilateral trade. The choice of the number of countries to be incorporated in the calculation was focused onthe countries which represented more than 1% of total bilateral trade with Kosovo. Therefore, 11 countries



were selected (including total trade with euro area member states) which overall accounts for approximately80% of total Kosovo’s trade (exports plus imports). Data for the period between the end 2002 and 2008were obtained form the Central Bank of Kosovo’s (CBK) publication of the geographical and commoditystructure of Kosovo’s foreign trade (see table 1).

Table 1. Relative weights of selected countries bilateral trade with Kosovo

Source: Central Bank of Kosovo and Macroeconomic Department calculations

As shown in the table above, euro area countries represent the largest trading partner of Kosovo accountingfor 27.5% of Kosovo’s combined exports and imports. Other countries which use different currencies alsorepresent important trading partners. In total, these countries account for 72.5% of combined trade(although the transactions with these countries may have occurred in euros which in turn, make pricesstickier).

The data for bilateral exchange rates of these countries with the euro were obtained from eurostat databaseas well as country respective central bank websites. Given that the exchange rate represents a number of units of foreign currency which can be purchased with one euro and each of them is expressed in differentunits, it is difficult to use the average. Therefore, we expressed them as indices by setting the value for Q42002 equal to 100 and the value for other years relative to this.

In calculating REER the choice of price indices is very important. According to Edwards (1989), the choiceof price index is crucial in computing real exchange rates and it relates to appropriate policy objectives.Therefore, if the objective is to measure the international competitiveness of the country or the impact of capital inflows on the economy, then the trade weighted CPI based index is more appropriate. As a result,the trade weighted CPI based index was used for measuring the REER for Kosovo. Moreover, CPI based indices are readily available for most of countries including Kosovo. Therefore, the data for CPI wasobtained from the countries’ central bank web sites and official statistical offices.



III. RESULTS

When calculating the REER for Kosovo, we first measured NEER (see figure 1). From this we see that between 2003 and 2008 euro appreciated slightly relative to the currencies of all other Kosovo’s trading partners. Specifically, euro appreciated by 5.3% compared with first quarter of 2003.

Figure 1. Nominal Effective Exchange rate of Kosovo

Kosovo Nominal Effective Exchange Rate (NEER) Index

80

85

90

95

100

105

110

115

120

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2002 2003 2004 2005 2006 2007 2008

NEER

In contrast with figure 1, in figure 2 we see no evidence of appreciation in the real value of euro againstKosovo’s main trading partners. In particular, Kosovo has slightly increased its level of internationalcompetitiveness during this period and had its real effective exchange rate being depreciated by 11%.

Figure 2. Nominal and Real effective exchange rate of Kosovo

Kosovo NEER and REER Index

80

85

90

95

100

105

110

115

120

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2002 2003 2004 2005 2006 2007 2008

NEER REER

This suggests that in real terms Kosovo improved its competitiveness compared with its trading partnersand the appreciation of the nominal exchange rate shown in figure 1 was mainly offset by the lower inflation in Kosovo than that of competitor economies. As it is shown, there is no evidence of a long termtrend of exchange rate though there are periods of substantial movements.



TECHNICAL APPENDIX

Knowing the fact that there are different definitions of REER in the literature, in this brief we define REER as the product of the nominal effective exchange rate and the effective relative price indices.

The nominal effective exchange rate is measured using the Arithmetic Mean method as:

it

k

i

it jit E w NEER ∑=

=1

*

Subscript j represents a country (Kosovo in our case), i the trading partner and t represents the period.

denotes the nominal effective exchange rate for Kosovo with respect to each trading partner i.

is the nominal exchange rate of euro and each trading partner in period t. represents the total tradeweight for each Kosovo’s trading partner.

jit NEERit E

it w

REER is also calculated using the Arithmetic Mean method such as:

)/()( *

0

it jt

k

i

jit jt PP NEER REER ∑=

=

Where is the total trade weighted consumer price index (CPI) of the trading partners and is the CPIof Kosovo.

*

it P jt P



APPENDIX 2.

ANALYSIS OF LABOR MARKET IN KOSOVO

Valmira RexhëbeqajMacroeconomics Department

July, 2009

Introduction

The aim of this brief is to identify and analyze what we currently know about labor market trends inKosovo. The intention is to look more closely at the current labor market situation, factors affecting labor supply and demand and at the problem of estimating unemployment.

Analyzing Kosovo’s labor market is a difficult and challenging effort. A number of existing economic

indicators, including the unemployment rate, registered employment, and others, serve as well knownmeasures of labor market activity. There are a number of studies analyzing the issue of employment and unemployment in Kosovo. Nevertheless, it should be emphasized that most of these studies have showninconsistent results, and for that reason, they should be considered with caution.

For the purpose of this brief, several sources of information are used: the Labor Force Survey (LFS), theadministrative data of the Public Employment Services (PES), the Tax Administration database on thenumber of declared taxpayers, and the number of pension contributors at KPST.

1. Characteristics of the Labor market

The Labor market in Kosovo is characterized by a low labor participation rate and a stronger labor forcegrowth than the rest of the region. A high natural growth of population in Kosovo has continuously kept thelabor supply increasing. According to the LFS (2007), the labor force participation rate1 was 46.8% in2007—the lowest in the region. This is mainly due to Kosovo having a young structure of population,worker discouragement and a low participation rate of women in the labor market. At least 30% of the population is assessed to be below the age of 15, therefore a critical challenge is to increase labor demand.

Next, unemployment is a major problem in Kosovo. The latest LFS (2007) suggests that 43.6% of the labor force is unemployed. Referring to the administrative data on unemployment published by the Ministry of Labor and Social Welfare (MLSW), during 2008, the number of registered unemployed by the end of 2008was over 335,000. Over 93% of these are long term unemployed 2, nearly 60% are unskilled and about 47 %

of registered unemployed are female. Another important feature is that the young cohort of population, thatof ages 15 to 24, represents the highest yearly inflow rate to unemployment.

Both supply and demand factors have been responsible for the high unemployment rate. On the supply side,high population growth in the past has increased the number of new entrants to the labor market, especially

1Labor force participation rate is defined as the share of employed and unemployed persons to the total working age population (15-64 years)2 The Long term unemployed are people who are registered as unemployed for more than 12 months.



the young. Labor demand however, has failed to catch up with labor supply because of the slow economicrecovery and the inability of the economy to generate new jobs. In addition to youth unemployment, a veryimportant feature is the existence of long-term unemployment. It is clear that low participation rates and labor force growth, and particularly the resulting higher unemployment rates, have major implications for policy-makers.

2. Labor Supply

Theoretically, the working age population and the extent to which individuals are willing to participate inthe labor force determine the supply of labor in a given economy. However, the primary driver to labor supply at a given point in time is the willingness to participate in the job market; that is the decision of individuals to be a part of the active population.

Due to the lack of population census and poor statistical data, estimating the labor supply figures in Kosovois problematic. In this regard, the most difficult point is identifying the active population3 in Kosovo. Themost important challenge to be faced in defining this number is the identification of the number of employed inhabitants, considering that almost all sources present different results. Nevertheless, for the purpose of this analysis we will first focus on LFS (2007) data.

2.1 Employment

According to the Labor Force Survey (LFS 2007), the working age population rate is 63.6% of the total population or approximately 1.2 to 1.3 million people. Further, the participation rate estimated as anaverage of the LFS and MSLW data is 51.4%4 of the active population; significanlty lower compared toother countries in the region.

Table 1. Estimated number of employed

Description

Number Rate Number Rate Number Rate Number Rate

Estimated resident population 2,069 2,100 2,126 2,153

Out of working age population ( SOK) 776 37.5% 785.40 37.4% 774 36.4% 784 36.4%

Working age population ( 15-64) 1,293 62.5% 1,315 62.6% 1,352 63.6% 1,369 63.6%

Active Population ( Participation rate) 636 49.2% 688 52.3% 695 51.4%

Unemployment rate / (LFS) 41.4% 44.9% 43.6%

Registered unempolyement 319 326 334 335

Employment (LFS) 374 28.9% 381 29.0% 320 23.7%

Employment taxpayers / numb.* 189 194 199 200

2005 2006 2007 2008

Source : Labor Force Survey ( 2007) , Ministry of Labor and Social Welfare*The official number of pension contributors at KPST

The overall number for employment is obtained by using the employment rate as estimated by SOK (LFS2007) and applying this rate to the number of the working age population. This number ranges between

320,000- 350,000. Both the number of population and that of the working age population are estimates.Thus, the calculated number for overall employment is also an assessment, presented as a range figure for the purpose of this brief.

3 The active population is defined as a sum of total number of employed and unemployed 4 SOK (2007) - Participation rate 46.8 % ; Ministry of Labor and Social Welfare Report (2008)- the participation rateranges between 57-60%



Adding the number of registered unemployed to the employment number obtained above, 334,000 in 2007,we end up with the number of around 700,000, close to the estimated number of the active population.However, this simple estimation ought to be taken with reserve, considering the reliability of data on thenumber of registered unemployed. As noted on other studies also5, a person may register as unemployed inorder to have access to social assistance benefits. Therefore, the number of people who are not activelyseeking for a job most probably boosts the unemployment number.

Besides LFS (2007) data, which in principle should capture all employment taking place in a country, for comparative purposes the number of officially employed who are paying pension contributions at KPST hasalso been used. This number shows the number of official registered employment taking place in Kosovo.According to this source, by the end of 2007 and 2008, there were around 200,000 registered employees paying pension contributions. Out of this number around 75,000 are employed as civil servants within thelocal and central Government administration, while the rest (around 135,000) are employed with privatecompanies, publicly and socially owned enterprises.

The KPST number of contributors is significantly lower compared to the estimated LFS (2007) number of employed. Since, LFS provides data on the overall employment while only registered employment isreported to the Tax Administration and the KPST; the difference can be interpreted as unregistered

employment. Such a difference, suggests that a considerable share of employment is taking place outside of the official records. Referring to the above estimates, the total number of active population over the years2005-2008 increased by some 60,000 people, while the cumulative number of those registered asunemployed remained steady6 over the same period . In such situation is not unreasonable to assume that asignificant number of employments is captured by informal economy. As can be seen in the Table 2, theinitial increasing trend of new registered unemployed (2004-2006) has declined over the period 2006-2008.

Table 2. Trends on registered unemployment 7 2004 2005 2006 2007

12 months inflow 30,395 29,661 30,327 21,979

12 months outflow 11,428 12,585 22,691 20,632 Source: Ministry of Labor and Social Welfare

In support to this argument a general employment index is calculated. The index is estimated by dividing

the difference between declared and estimated number of employees through Labor Force Survey (LFS)with number of the official registered employees. As it is shown on the table below the average index for 2005-2007 is 1.85, meaning that on average the general employment should be by around 85% higher thanthe registered one. While the share of informal employment in total general employment, that is estimated as a share of this difference in total general employment (assessed through LFS), on average is assessed to be around 45%.

Table 3. Employment Index2005 2006 2007 Average

Employment based on employment rate LFS/ numb. 374 381 320 358

Employment taxpayers / numb.* 189 194 199 194Difference 185 188 121 165

Share of informal employment in total employment 49% 49% 38% 45%

Total employment index 1.98 1.97 1.61 1.85 Source: Macroeconomics Department, Internal Calculation

5 Macroeconomic Bulletin ( 2008)6 The number of newly registered unemployed persons is declining over years7 12 Months Inflow- the average number of monthly new registered unemployed

12 Months Outflow- the average number of the monthly sum of placed and deleted former registered unemployed



This statement is further supported by figures presented in the report “Statistical Repertoire of Enterprisesin Kosovo 2004 – 2008”, SOK, where the figures show a very low average number of employed persons per enterprise on the private sector. Table 4 below shows the official number of enterprises who declared taxes and the number of declared taxpayers. For analytical purposes the number of declared employees has been divided by the number of enterprises. The generated numbers (third pillar) shows the average number of employees per enterprise disaggregated into sectors.

Table 4 . Official Number of enterprises and declared employees at TAK

2005 2006 2007 2005 2006 2007 2005 2006 2007

TOTAL 38,501 36,238 37,830 84,585 94,906 90,643 2 3

A AGRICULTURE, HUNTING AND FORESTRY 413 387 480 1,376 1,223 1,194 3 3 2

B FISHING 13 12 12 66 67 74 5 6 6

C MINING AND QUARRYING 144 154 164 1,039 2,380 4,162 7 15 25

D MANUFACTURING 3,916 3,749 3,933 16,929 18,338 17,113 4 5

E ELECTRICITY, GAS AND WATER SUPPLY 35 35 41 12,191 15,029 10,191 348 429 249

F CONSTRUCTION 1,895 1,670 1,819 5,189 5,731 5,722 3 3 3

G WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES 20,296 19,119 19,637 21,353 24,035 23,248 1 1

H HOTELS AND RESTAURANTS 3,230 3,024 3,159 5,209 5,309 5,054 2 2 2

I TRANSPORT, STORAGE AND COMMUNICATION 3,679 3,139 3,117 7,126 7,751 7,639 2 2 2

J FINANCIAL INTERMEDIATION 82 101 128 3,243 3,345 3,977 40 33 31

K REAL ESTATE, RENTING AND BUSINESS ACTIVITIES 1,298 1,339 1,603 2,796 3,125 3,437 2 2 2

L PUBLIC ADMINISTRATION AND DEFENCE, 59 69 72 1,353 1,321 1,586 23 19 22

M EDUCATION 381 362 376 1,094 1,269 1,356 3 4 4

N HEALTH AND SOCIAL WORK 877 932 1,028 1,650 1,757 1,864 2 2 2

O OTHER COMMUNITY, SOCIAL AND PERSONAL SERVICE ACTIVITIES 2,159 2,126 2,242 3,842 4,031 3,890 2 2 2

P PRIVATE HOUSEHOLDS WITH EMPLOYED PERSONS 4 4 3 5 0 1 0

Q EXTRA TERRITORIAL ORGANIZATIONS AND BODIES 20 16 16 129 190 136 6 12 9

Description

Number of enterprises that have

decl ared t ax es Nu mber of d ec lared emp loyees

Average number o f

employees

2

4

1

Source: Statistical Repertoire of Enterprises in Kosovo 2004 – 2008, SOK

Looking for example at sectors such as “Construction” and “Hotels and Restaurants”, the data is suggestingthat the average number of declared number of employees per enterprise is 3 and 2 respectively. Eventhough we are aware of the fact that such a simple calculation is not reliable and does not take intoconsideration the seasonal effects of employment, still we believe it represents the phenomena of under-reporting. This argument could be further strengthened by the fact that around 65% (Table 5) of enterpriseswho declared taxes at TAK during 2007, have not declare any employee. Even though the data shows thatover 80% of enterprises are registered as individual businesses, still this percentage is assessed to be very

high.



Table 5. Official Number of enterprises and declared employees by category of employees ( as a

share to total)

% xx % 1-4 % 5-9 % 10-19 % 20-49 % 50-249 % 250

37830 65% 24529 29% 10830 4% 1394 1% 557 1% 305 0% 181 0% 34

A AGRICULTURE, HUNTING AND FORESTRY 480 70% 336 23% 109 3% 13 2% 9 1% 7 1% 6 0% 0

B FISHING 12 75% 9 8% 1 8% 1 0% 0 0% 0 8% 1 0% 0

C MINING AND QUARRYING 164 49% 81 32% 52 11% 18 1% 1 4% 7 2% 3 1% 2

D MANUFACTURING 3933 50% 1951 39% 1541 6% 227 2% 87 2% 73 1% 44 0% 10

E ELECTRICITY, GAS AND WATER SUPPLY 41 32% 13 27% 11 2% 1 2% 1 5% 2 24% 10 7% 3

F CONSTRUCTION 1819 57% 1040 28% 518 7% 133 4% 76 2% 32 1% 19 0% 1

G

WHOLESALE AND RETAIL TRADE; REPAIR OF

MOTOR 19637 67% 13241 28% 5499 3% 534 1% 221 1% 102 0% 37 0% 3

H HOTELS AND RESTAURANTS 3159 49% 1557 42% 1314 8% 237 1% 38 0% 11 0% 2 0% 0

I TRANSPORT, STORAGE AND COMMUNICATION 3117 80% 2488 15% 475 3% 80 1% 34 1% 26 0% 10 0% 4

J FINANCIAL INTERMEDIATION 128 50% 64 30% 38 0% 0 5% 6 4% 5 7% 9 5% 6

K REAL ESTATE, RENTING AND BUSINESS

ACTIVITIES 1603 70% 1130 22% 357 4% 62 2% 27 1% 16 1% 9 0% 2

L

PUBLIC ADMINISTRATION AND DEFENCE, 72 47% 34 24% 17 7% 5 4% 3 8% 6 8% 6 1% 1

M EDUCATION 376 41% 156 44% 167 7% 27 4% 14 2% 8 1% 4 0% 0

N HEALTH AND SOCIAL WORK 1028 64% 653 32% 334 2% 20 1% 13 0% 1 1% 6 0% 1O

OTHER COMMUNITY, SOCIAL AND PERSONAL 2242 79% 1770 17% 389 2% 36 1% 24 0% 7 1% 15 0% 1

P PRIVATE HOUSEHOLDS WITH EMPLOYED

PERSONS 3 100% 3 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0

Q

EXTRA TERRITORIAL ORGANIZATIONS AND

BODIES 16 19% 3 50% 8 0% 0 19% 3 13% 2 0% 0 0% 0

Economic Activities TotalCategory of number of employees

TOTAL


“xx”- denotes companies that haven’t declared any employees to Tax Administration

Different studies8 of employment so far conclude that it is believed that most of informal employment istaking place on the sectors such as construction, catering, agriculture.

Therefore looking at the Table above, in the construction sector for example 57 % of enterprises have notdeclared any employment to the tax authorities. While 28% of companies are stated to have employed 1 to 4

employees. Even though there is a lot of uncertainty, judging from that what we observe in the economyand the level of construction taking place in the country, one might believe that the undeclared employmentis clearly significant in this sector. The situation is similar in “Wholesale and retail” and “Hotels and Restaurant”, where the percentage of companies that have not declared an employee is 67% and 49 %respectively.

2.2 Labor Demand

Employment rates are of course not only the result of demographic causes and high entries in the labor market but also the consequence of slow economic growth. Therefore what is important for the labor marketto absorb workers is to strengthen the dynamism of the demand for labor in general. However this is not aneasy task.

Besides low economic growth and the inability of economy to generate insufficient number of new jobs,other identified problems related to the labor market are labor mismatches (between labor demand and labor supply), long transition from school to work and so on. Thus it is clear that labor demand is a key toimproving labor market conditions. According to the MLSW “Labor and Employment” 2008, KosovoEmployment Offices realized only 5,845 direct placements of registered unemployed persons into new jobs.However this number shows only a share of registered employment taking place in the overall economy.

8 World Bank, ILO



Despite potential undeclared employment as noted earlier, it is of interest to know something about thegrowth of employment by sectors, in order to analyze whether the sectoral distribution of employment haschanged over the years. With regard to the sectoral composition, currently the largest number of registered employed are employed in the secondary and tertiary sector of the economy. This is mainly due tosuccessful development of the private sector in areas such as trade, finance, as well as to the recovery of

growth in privatized companies.

The data indicates that over the three years there has been a decline on agriculture employment. Even

though the level of employment on this sector is considered to be low it reflects employment in a sector where

the productivity is low. A significant problem is the fragmentation of agricultural farms. The partitioning of the land creates impediments to the development of a modern and efficient agriculture.

However, this decline has been offset by the gain in employment in mining and quarrying. Increasingemployment in mining has been the result of more activity in this sector, and also the successful privatisation of several mining companies

Employment in manufacturing and construction has continuously increased. Manufacturing employment has

started recovering in the most recent year, following the successful privatization of some major companies and also successful operations of some local firms.

The largest share of labor has been absorbed by the service sector. This sector is composed of a diverserange of activities such as trade, financial intermediation, and real estate and so on. The number of employed within the trade sector has increased from over 21,300 employed during 2005 to over 23,000during 2007. Similarly as with the trade sector, the number of employed within the financial intermediationand the real estate business has shown a gradual increase over the years. This increase in the number of employed within financial intermediation activities is a result of the increased banking and other financialactivities in the country, which is supported by the increase on the number of banks and other financialinstitutions operating in Kosovo.

Table 6. Official Number of declared employees at TAK, by economic activities

2005 2006 2007

TOTAL 84,585 94,906 90,643

A AGRICULTURE, HUNTING AND FORESTRY 1,376 1,223 1,194

B FISHING 66 67 74 C MINING AND QUARRYING 1,039 2,380 4,162

D MANUFACTURING 16,929 18,338 17,113

E ELECTRICITY, GAS AND WATER SUPPLY 12,191 15,029 10,191 F CONSTRUCTION 5,189 5,731 5,722

G WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES 21,353 24,035 23,248

H HOTELS AND RESTAURANTS 5,209 5,309 5,054 I TRANSPORT, STORAGE AND COMMUNICATION 7,126 7,751 7,639

J FINANCIAL INTERMEDIATION 3,243 3,345 3,977 K REAL ESTATE, RENTING AND BUSINESS ACTIVITIES 2,796 3,125 3,437

L PUBLIC ADMINISTRATION AND DEFENCE, 1,353 1,321 1,586

M EDUCATION 1,094 1,269 1,356 N HEALTH AND SOCIAL WORK 1,650 1,757 1,864

O OTHER COMMUNITY, SOCIAL AND PERSONAL SERVICE ACTIVITIES 3,842 4,031 3,890

P PRIVATE HOUSEHOLDS WITH EMPLOYED PERSONS 5 Q EXTRA TERRITORIAL ORGANIZATIONS AND BODIES 129 190 136

Description Number of declared employees




Concluding Comments

The above analysis of the labor market as described by the available sources of statistical iformation revealsthe following:

• The approximate number of employed persons in Kosova falls within the range of 320,000-350.000

• The discrepancies between the employment rates given by LFS in one hand and the number of pension contributors on the other, indicates that the number of undeclared employees constitutes asignificant share of employment in Kosova.

• An employment index suggests that on average, general employment might be some 85% higher than the registered one. While the share of informal employment in total employment on average isassessed to be around 45%.

• According to the LFS results, the participation rate has followed a slightly negative path.Considering the limited coverage of the LFS, this trend should be interpreted with caution. Nonetheless, in the economy where the unemployment rate remains approximately constant, wemight normally expect to observe an increase in the number of discouraged workers.

• Considering the population growth and the high number of new entrants to the labor market, it is achallenge for Kosova’s economy to maintain the unemployment rate at the current level. Accordingto the “Labour market in Kosovo: A projection on the relationship between the GDP growth and unemployment “ Domi, A9, a balanced GDP growth rate of 4.7% in real terms is only sufficient tokeep the unemployment rate constant, while a 7.3% growth rate will halve unemployment rate byyear 2020.

9Semiannual Macroeconomic Bulletin: January – June 2008, Issue 1



APPENDIX 3: TABLES TABLE 1.1

KOSOVO MAIN INDICATORS, 2007 –09

2007 2008 2009

Est. Actual Proj.Real growth rates (in percent)

GDP 5.0 5.4 4.4

Private sector consumption 6.9 2.2 3.5

GDP per capita 3.3 3.9 2.9

Private consumption per capita 5.1 0.7 1.9

Price changes (in percent)

CPI 4.2 9.4 -2.5

GDP 3.2 2.4 -3.4

General government budget (in percent of GDP)

Revenues 25.6 24.8 29.5

Primary expenditures 18.6 26.5 30.7

Of which : Capital and net lending 4.2 9.4 12.0

Current balance 11.2 7.7 10.8

Primary balance 6.9 -1.7 -1.2

Overall balance (including notional interest payments) 6.9 -2.4 -2.1

Savings/investment balances (in percent of GDP)

Domestic savings -12.2 -16.3 -12.9

Remittances 10.6 10.2 8.9

Income from abroad (net) 0.9 1.3 1.3

National savings -0.7 -4.8 -2.6

Investment 28.0 32.1 36.9

Current account -17.1 -24.8 -28.4

Foreign assistance 9.8 9.1 7.7

Main aggregates (in millions of euros)

GDP 3,516 3,795 3,918

GDP per capita (in euros) 1,701 1,809 1,840

GNDI per capita (in euros) 1,924 2,058 2,071

Workers remittances 372 387 350

Foreign assistance 345 345 301

Population (in thousands) 2,067 2,098 2,129

Description

Source: Macroeconomic Department, MEF



TABLE 1.2

KOSOVO: GDP AT CURRENT PRICES, 2007-09

2007 2008 2009

Est. Actual Proj.

Consumption 3,944 4,356 4,408 2008

Households 3,277 3,657 3,678 10.8

Public 667 700 730 0.9

General government 353 386 460 0.9

Wages 209 227 263 0.5

Goods and services 145 158 197 0.4

Donor sector 314 314 270 0.0

0.0

Investment 984 1,219 1,445 6.7

Donor sector 36 37 105 0.0

General government 155 347 470 5.5

Private investment 793 835 870 1.2

Net exports of goods and services -1,413 -1,780 -1,935

Exports 400 440 393

Exports of goods 165 196 157

Exports of services 235 244 236

Imports 1,812 2,220 2,328

GDP 3,516 3,795 3,918

Workers remittances (net) 431 475 441

Income from abroad (net) 31 48 52

GNDI 3,978 4,318 4,410

Description

Source: Macroeconomic Department, MEF



TABLE 1.3

REGISTERED UNEMPLOYMENT

J an Feb Mar Apr May Jun J ul Aug Sep Oct Nov Dec J an Feb Mar Apr May Jun

Unskilled

Number 164,577 177,943 189,776 200,425 200,939 200,878 201,134 201,211 200,732 200,719 200,773 201,006 200,795 200,892 200,969 201,544 202,081 202,081 202,827 202,719 202,857

% share in total 58.3% 59.0% 59.4% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60%

Semi-skilled

Number 13,321 12,948 13,236 14,013 14,012 14,028 13,990 13,917 13,916 13,861 13,831 13,755 13,757 13,693 13,695 13,682 13,683 13,686 13,672 13,631 13,615

% share in total 4.7% 4.3% 4.1% 4.2% 4.2% 4.2% 4.2% 4.1% 4.1% 4.1% 4.1% 4.1% 4.1% 4.1% 4.1% 4.1% 4.1% 4.0% 4.0% 4.0% 4.0%

Skilled

Number 26,406 27,557 28,746 29,790 29,781 29,794 29,658 29,587 29,484 29,448 29,400 29,396 29,387 29,235 29,025 29,081 29,066 29,040 29,029 28,986 28,970

% share in total 9.4% 9.1% 9.0% 8.9% 8.9% 8.9% 8.8% 8.8% 8.8% 8.8% 8.8% 8.8% 8.8% 8.7% 8.6% 8.6% 8.6% 8.6% 8.6% 8.6% 8.6%

Secondary School

Number 73,194 78,286 83,215 86,544 86,669 86,761 86,714 86,630 86,775 86,831 86,704 86,684 86,660 86,644 87,087 87,515 87,795 88,081 88,060 87,898 87,844

% share in total 25.9% 26.0% 26.0% 25.8% 25.8% 25.8% 25.8% 25.8% 25.8% 25.8% 25.8% 25.8% 25.8% 25.8% 25.9% 26.0% 26.0% 26.0% 26.0% 26.0% 25.9%

High school

Number 2,357 2,357 2,375 2,209 2,155 2,140 2,151 2,161 2,189 2,194 2,194 2,196 2,206 2,211 2,213 2,221 2,230 2,234 2,221 2,223 2,193

% share in total 0.8% 0.8% 0.7% 0.7% 0.6% 0.6% 0.6% 0.6% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.6%

University

Number 2,492 2,264 2,373 2,751 2,734 2,765 2,789 2,813 2,839 2,867 2,865 2,844 2,892 2,886 2,953 2,974 2,986 3,018 3,027 3,064 3,055

% share in total 0.9% 0.8% 0.7% 0.8% 0.8% 0.8% 0.8% 0.8% 0.8% 0.9% 0.9% 0.8% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9%

Total 282,347 301,355 319,721 335,732 336,290 336,366 336,436 336,319 335,935 335,920 335,767 335,881 335,697 335,561 335,942 337,017 337,841 338,140 338,836 338,521 338,534

20092008

Cumulative numbers, end of period

2004Description 2003 2005


TABLE 1.4

REGISTERED PLACEMENTS

J an Feb Mar Apr May Jun J ul Aug Sep Oct Nov Dec J an Feb Mar Apr May Jun

Unskilled

Number 1,720 2,444 2,425 112 325 476 582 743 1,045 1,226 1,359 1,547 2,186 2,447 2,526 76 144 454 641 1,056 1,335

% share in total 32.8% 38.4% 41.6% 29.8% 39.6% 40.3% 38.0% 38.7% 41.1% 40.7% 40.2% 39.0% 43.3% 43.9% 43.3% 25.9% 24.5% 36.8% 37.2% 42.6% 43.1%

Semi-skilled

Number 158 120 120 6 13 19 26 35 46 58 82 92 111 116 124 15 25 43 53 74 90

% share in total 3.0% 1.9% 2.1% 1.6% 1.6% 1.6% 1.7% 1.8% 1.8% 1.9% 2.4% 2.3% 2.2% 2.1% 2.1% 5.1% 4.3% 3.5% 3.1% 3.0% 2.9%

Qualified

Number 323 365 441 9 22 44 64 88 112 135 164 217 269 283 295 20 33 98 139 178 215

% share in total 6.2% 5.7% 7.6% 2.4% 2.7% 3.7% 4.2% 4.6% 4.4% 4.5% 4.9% 5.5% 5.3% 5.1% 5.1% 6.8% 5.6% 7.9% 8.1% 7.2% 6.9%

Secondary School

Number 2,142 2,602 2,414 207 374 519 702 860 1,107 1,335 1,478 1,706 2,010 2,182 2,295 144 300 472 672 912 1,158

% share in total 40.9% 40.8% 41.5% 55.1% 45.6% 44.0% 45.8% 44.8% 43.6% 44.4% 43.8% 43.0% 39.9% 39.1% 39.3% 49.1% 51.1% 38.3% 39.0% 36.8% 37.4%

High school

Number 336.0 316.0 127.0 1 8 11 18 23 28 32 36 54 62 66 76 2 5 9 16 22 26

% share in total 6.4% 5.0% 2.2% 0.3% 1.0% 0.9% 1.2% 1.2% 1.1% 1.1% 1.1% 1.4% 1.2% 1.2% 1.3% 0.7% 0.9% 0.7% 0.9% 0.9% 0.8%

University

Number 563 523 296 41 78 111 140 171 203 224 258 352 405 486 519 36 80 157 200 235 274

% share in total 10.7% 8.2% 5.1% 10.9% 9.5% 9.4% 9.1% 8.9% 8.0% 7.4% 7.6% 8.9% 8.0% 8.7% 8.9% 12.3% 13.6% 12.7% 11.6% 9.5% 8.8%

Total 5,242 6,370 5,823 376 820 1,180 1,532 1,920 2,541 3,010 3,377 3,968 5,043 5,580 5,835 293 587 1,233 1,721 2,477 3,098

20092008

Cumulative numbers, end of period

Description 2003 2004 2005




TABLE 1.5

PLACEMENTS BY SECTORS AND SKILLS2006


Manufacturing 245 527 1116 67 108 167 252 328 404 450 556 620 649 667 695 44 70 127 201 267 302

Unskilled 556 23 41 73 88 106 142 150 193 221 241 259 270 16 24 51 74 90 9

Semiskilled 49 1 2 4 4 4 6 7 20 24 25 25 26 6 7 8 8 11

Skilled 32 5 6 14 21 27 30 31 47 55 56 56 57 4 5 6 24 26 2

Sec.school 218 494 425 37 56 70 127 175 202 233 266 289 296 296 311 15 30 46 79 123 14

High school 6 5 10 0 1 1 2 2 4 4 4 4 4 4 4 0 0 2 2 2

University 21 28 44 1 2 5 10 14 20 25 26 27 27 27 27 3 4 14 14 15

Construction 149 219 430 7 17 84 107 132 144 155 182 257 269 283 303 21 59 77 101 111 16

Unskilled 233 2 7 27 34 42 45 53 66 86 88 97 101 14 18 19 33 36 5

Semiskilled 7 0 0 0 0 0 2 2 2 5 5 5 8 0 0 6 6 7

Skilled 51 0 1 3 3 14 17 17 19 49 49 49 50 3 4 5 5 5

Sec.school 140 199 111 5 9 50 65 69 73 76 88 109 119 124 135 3 36 44 54 60 9

High school 2 2 1 0 0 1 2 2 2 2 2 2 2 2 3 0 0 0 0 0

University 7 18 27 0 0 3 3 5 5 5 5 6 6 6 6 1 1 3 3 3

Trade 622 1063 1364 158 274 365 431 515 611 687 750 848 877 960 982 61 122 246 396 535 63

Unskilled 535 45 89 134 150 195 233 260 279 311 321 346 363 17 33 87 138 210 24

Semiskilled 29 2 5 6 9 10 10 11 17 17 17 17 17 3 5 5 11 11

Skilled 46 2 6 6 11 22 23 23 28 29 29 34 37 1 2 10 17 17

Sec.school 571 945 707 101 163 204 243 268 324 367 399 460 475 525 525 35 68 124 197 260 31

High school 12 91 9 0 1 2 4 4 4 6 6 6 6 6 6 1 1 2 5 6

University 39 27 38 8 10 13 14 16 17 20 21 25 29 32 34 4 13 18 28 31 3

Agricu lture and forest ry 189 239 225 2 97 104 110 116 155 180 183 191 894 1065 1098 11 13 192 226 280 40

Unskilled 153 2 94 99 102 105 124 141 142 144 623 787 820 6 6 183 216 257 35

Semiskilled 1 0 0 0 0 0 0 1 1 1 9 11 11 0 0 0 0 2

Skilled 12 0 0 1 1 1 1 1 1 1 32 33 33 0 2 2 2 3

Sec.school 183 232 41 0 3 4 6 8 26 33 35 41 220 223 223 4 4 5 5 15

High school 3 2 9 0 0 0 0 0 1 1 1 1 5 5 5 0 0 0 0 0

University 3 5 9 0 0 0 1 2 3 3 3 3 5 6 6 1 1 2 3 3

Education 160 202 370 11 33 43 61 74 89 98 131 231 251 271 307 12 30 42 58 68 7

Unskilled 20 1 1 1 2 3 6 6 7 10 11 13 15 2 4 5 6 7

Semiskilled 1 0 0 0 0 0 0 1 1 1 1 1 2 0 0 0 0 0

Skilled 3 0 0 1 2 2 2 2 2 4 4 4 6 0 2 2 3 3

Sec.school 60 87 107 5 10 14 18 20 25 29 34 48 50 54 65 0 2 6 8 11

High school 44 20 74 0 5 6 9 12 12 12 16 32 35 35 44 0 2 3 5 5

University 56 95 165 5 17 21 30 37 44 48 71 136 150 164 175 10 20 26 36 42 4

Finance 34 19 69 7 11 14 18 22 24 25 28 41 43 51 60 3 7 11 16 21 2

Unskilled 5 0 0 0 0 1 1 1 1 2 2 3 4 1 2 2 2 2

Semiskilled 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0

Skilled 6 0 0 0 0 0 1 1 1 1 1 1 1 0 0 0 2 2

Sec.school 21 8 37 0 3 5 7 8 8 8 9 10 10 12 12 2 4 4 5 6

High school 2 1 2 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0

University 11 10 19 6 7 8 10 12 13 14 16 27 29 34 41 0 1 5 7 11

Hotels and Restaurants 622 13 40 81 107 149 186 241 261 270 279 314 321 40 89 117 154 177 20

Unskilled 232 11 18 42 57 78 87 102 105 107 113 124 125 10 27 42 61 69 8

Semiskilled 45 0 1 2 2 2 3 4 5 6 7 7 8 0 1 1 3 6

Skilled 37 0 2 7 7 12 13 18 18 21 21 22 23 4 9 11 11 13

Sec.school 303 2 19 30 41 57 83 117 133 136 138 161 165 26 52 63 79 89 10

High school 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

University 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

2008Description

2005 2007 2009

Number of persons, cumulative , end of period

1

1

1

2

4

1

1

1

1




TABLE 1.6

SOCIAL WELFARE Supplementary Basic Pension Paymen

No. of applicants Total payment (in

millions of euros)No. of applicants

Total payment (in


Total payment (in


Total payment (in


Total payment (in

millions of euros)No. of families

Total payment

(in millions of

euros)

No. of

families

Total payment

(in millions of

euros)

2005 122,063 5.0 7,011 0.40 18,861 1.29 4,728 1.08 42,896 2.63

2006 122,043 5.2 7,391 0.41 21,959 1.23 4,890 0.24 41,672 2.53

2007

J an 129,265 5.5 8,470 0.7 14,581 0.8 4,654 0.2 40,579 2.5

Feb 83,055 3.4 8,584 0.8 15,027 0.7 4,669 0.2 40,299 2.5

Mar 119,083 6.3 8,800 0.8 15,890 0.8 4,665 0.2 39,934 2.4

Apr 122,707 5.3 8,905 0.8 16,804 0.9 4,667 0.2 39,207 2.4

May 122,063 5.2 9,020 0.8 18,135 1.0 4,675 0.2 38,671 2.4

J un 127,048 5.3 8,955 0.7 18,474 0.9 4,664 0.2 37,898 2.3

J ul 128,310 5.3 9,077 0.8 18,568 0.8 4,653 0.2 37,406 2.3

Aug 112,171 4.6 9,138 0.8 18,429 0.8 4,637 0.2 37,220 2.3

Sep 122,620 5.5 9,253 0.8 18,424 0.8 4,637 0.2 37,392 2.3

Oct 122,620 5.6 9,324 0.8 18,424 0.8 4,636 0.2 37,010 2.3

Nov 128,882 5.4 9,391 0.8 18,669 0.9 4,630 0.2 37,229 2.3

Dec 130,523 5.5 9,486 0.8 18,828 0.8 4,625 0.2 37,170 2.3

2008

J an 132,421 5.4 9,428 0.8 17,715 0.8 4,640 0.2 37,401 2.3

Feb 117,706 4.8 9,507 0.8 17,675 0.8 4,642 0.2 37,303 2.3

Mar 119,349 5.2 3,004 0.3 9,649 2.4 17,905 0.8 4,626 0.2 36,879 2.2

Apr 126,057 5.5 20,315 2.5 9,755 1.4 18,217 0.8 4,622 0.2 36,725 2.2

May 130,500 5.6 21,931 1.0 10,237 1.6 18,475 0.8 4,607 0.2 36,440 2.2

J un 132,500 5.6 22,937 1.0 10,651 1.7 18,556 0.8 4,602 0.2 35,911 2.2

J ul 134,649 5.6 23,978 1.0 11,019 1.7 18,648 0.8 4,597 0.2 35,343 2.15

Aug 135,511 5.6 25,133 1.1 11,154 1.5 18,564 0.8 4,579 0.2 35,004 2.16Sep 137,011 5.7 26,326 1.1 11,253 1.5 18,649 0.8 4,574 0.2 34,232 2.09

Oct 137,738 5.6 26,911 1.1 11,327 1.5 19,057 0.9 4,577 0.2 33,716 2.06

Nov 137,792 5.6 27,389 1.1 11,425 1.5 19,748 1.0 4,572 0.2

Dec 138,847 5.7 27,774 1.1 11,509 1.5 20,053 0.9 4,540 0.2 34,307 2.10

2009

J an 139,216 5.6 27,937 1.0 11,658 1.6 11,327 0.5 4536 0.2 34,860 2.1 2,000 0.2

Feb 139,593 7.0 28,135 1.0 11,788 1.6 14,405 0.9 4506 0.2 35,392 2.5 2,000 0.2

Mar 112,508 5.1 24,177 0.9 11,884 1.6 18,091 1.2 4465 0.2 35,731 2.4 2,000 0.2

Apr 132,160 6.9 27,698 1.1 11,935 1.6 19,392 1.1 4100 0.2 35,618 2.4 2,000 0.2

May 136,579 6.5 28,430 1.1 11,989 1.6 19,813 1.0 4312 0.2 35,595 2.4 2,000 0.2

J un 138,774 6.5 28,855 1.1 12,026 1.6 19,976 1.0 4302 0.2 35,773 2.4 2,000 0.2

Social Assistance Trepca Pensions Social Assistance

Year

Basic Pension Payments War Invalids Payments Disability Pensions

Source: Ministry of Labor and Social Welfar



TABLE 1.7

CONSUMER PRICE INDEX (CPI), (Base year - May 2002)

excluding oil

prices

excluding oil

and food

prices

excluding

oil prices

excluding oil

and food

prices

excluding oil

prices

excluding oil and

food prices

99.2 98.8 102.9 -1.1 -1.5 0.2 - - -

97.9 96.6 102.4 -1.4 -2.3 -0.5 - - -

98.5 96.7 102.1 0.6 0.1 -0.4 - - -

102.9 102.9 102.0 4.5 4.5 -0.3 0.9 0.9 0.0

100.5 100.5 103.5 1.6 1.6 -0.1 0.1 0.1 -0.2

99.5 99.5 100.6 0.8 0.8 -0.7 -0.2 -0.2 -0.7

102.2 102.2 100.9 4.9 4.9 -0.1 1.5 1.5 0.2

109.3 109.3 103.1 10.7 10.7 -0.2 2.1 2.1 0.7

112.4 111.5 102.8 9.4 8.5 0.7 0.0 0.0 0.3

111.5 111.5 103.2 10.7 10.7 -0.7 0.8 0.8 0.0

112.1 112.1 103.5 11.3 11.3 0.0 0.5 0.5 0.3

113.2 113.2 102.7 13.0 13.0 -0.3 1.0 1.0 -0.8

112.3 112.3 103.1 11.7 11.7 -0.3 0.8 0.8 -0.2

112.8 112.8 99.2 13.5 13.5 -1.6 -0.4 -0.4 -3.4

113.6 113.6 99.2 14.1 14.1 -1.1 0.7 0.7 0.1

113.3 113.3 100.0 13.9 13.9 -0.7 -0.3 -0.3 0.7

113.2 113.2 99.5 13.8 13.8 -1.1 0.0 0.0 -0.9

J ul 112.8 110.1 101.7 13.8 11.1 0.9 -0.4 -2.8 1.7

Aug 111.7 109.1 102.3 7.7 5.2 1.4 -1.0 -0.9 0.6

Sep 111.8 109.4 102.9 7.6 5.3 1.7 0.1 0.3 0.7

112.1 109.6 102.3 9.7 7.2 1.3 -0.4 -1.1 1.0

Oct 112.9 111.0 105.5 4.3 2.6 2.3 1.0 1.4 2.5

Nov 111.8 110.8 106.4 2.5 1.6 3.3 -1.0 -0.1 0.8

Dec 110.9 110.5 106.7 0.3 -0.1 3.4 -0.8 -0.3 0.3111.9 110.8 106.2 2.4 1.4 3.0 -0.3 0.3 1.2

110.9 110.8 107.4 -0.5 -0.6 4.0 0.0 0.2 0.6

110.9 110.5 107.8 -1.1 -1.4 4.2 0.0 -0.2 0.4

110.7 114.6 104.0 -2.2 1.2 1.4 -0.2 3.7 -3.5

110.8 112.0 106.4 -1.3 -0.3 3.2 -0.1 1.2 -0.8

110.9 108.7 104.0 -1.7 -3.7 4.9 0.2 -5.2 0.0

108.9 108.3 104.1 -4.1 -4.7 4.9 -1.8 -0.4 0.1

108.6 108.0 104.3 -4.1 -4.7 4.3 -0.3 -0.3 0.2

109.5 108.3 104.2 -3.3 -4.4 4.7 -0.6 -1.9 0.1

Q3

Q4

Q2

Q1

April

May

J un

2008

J an

Feb

Mar

Q3

Q4

2005

Year

CPI CPI

2004

CPI

Index, Monthly and average for the

quarter Annual perecentage change Monthly perecentage change 1/

2006

Q2

Q1

2007

2009

J an

Feb

Mar

Q2

Q1

April

May

J un

Source: Statistical Office of Kosova;1/ Quarterly percentage change for quarterly average



TABLE 2.1

CONSOLIDATED GOVERNMENT BUDGET

J an Feb Mar Apr May J un

Total revenues 628.2 712.1 894.2 941.5 66.2 56.2 65.2 80.7 74.5 77.3

Tax revenues 563.4 624.9 711.1 804.5 57.6 48.4 53.0 70.2 62.3 66.6

Costums tax 434.4 457.4 530.6 604.2 31.7 36.9 45.8 47.5 53.3 55.9

Domestic Tax 129.0 167.5 180.5 200.3 26.7 12.3 11.4 28.3 9.9 11.3

Tax refunds -10.1 -4.35 -9.5 -21.3 -0.8 -0.7 -4.2 -5.5 -0.9 -0.6

Non-tax revenues central level 46.3 63.8 53.2 59.1 3.6 2.9 5.2 3.8 5.7 3.7

Municipal own source revenues 28.6 27.8 29.2 42.8 2.8 2.6 3.0 3.8 3.9 4.1

Own source revnues Central Organisations 25.7 35.1 2.3 2.2 4.0 2.9 2.6 2.9

Nontax revenues 74.9 91.5 108.1 137.1 8.7 7.8 12.2 10.5 12.2 10.7

Te hyrat nga licenca e telekomunikacionit - - 75.0 0.0 2.8 2.6 3.0 3.8 3.9 4.1

Total expenditures 696.1 635.4 662.0 942.4 33.8 67.5 60.9 64.0 81.1 89.8

Current expenditure 529.2 502.2 506.7 595.3 33.8 66.5 55.2 51.6 53.7 56.9

Wages and salaries 194.6 203.8 208.5 227.1 8.6 30.2 22.7 21.4 22.4 21.7

Goods and services 142.8 143.0 127.3 140.0 2.6 7.8 10.3 10.4 10.2 13.8

Utilities … 0.0 17.9 18.5 0.5 1.9 1.9 2.2 1.5 1.0

Subsidies and transfers 191.8 155.4 153.0 209.8 22.2 26.6 20.3 17.6 19.6 20.4

Of which: Pension and social assistance 114.4 117.0 0.0 0.0

Other transfers and subsidies 77.5 38.4 0.0 0.0

Reserve _ 0.0 0.0 0.0

Capital expenditure 144.9 133.2 155.3 347.1 0.0 1.0 5.7 12.4 27.4 33.0

Net lending - - 0.0 0.0

Current balance 99.1 98.7 387.5 346.2 32.4 -10.3 9.9 29.1 20.8 20.4

Primary balance -67.8 -67.4 232.2 (0.9) 32.4 (11.3) 4.2 16.7 (6.6) (12.5)

Interest payments _ _ 0.0 0.0

Budgetary support grants 11.2 10.0 0.0 0.0

Overall balance after budgetary support -56.6 -57.5 232.2 (0.9) 32.4 (11.3) 4.2 16.7 (6.6) (12.5)

Flow data, in millions of EUR

2,0082009

2006Description 2,0072005

Source: Treasury department (MEF)



TABLE 2.2

TOTAL BUDGET REVENUES

Border taxes Domestic taxes Commerz-Bank BPK

639.9 550.1 436.0 114.2 45.9 23.2 17.2 3.5 0.3 3.2

648.3 563.4 434.4 129.0 46.3 28.6 7.4 2.6 0.2 2.4

713.1 621.0 457.1 163.9 54.3 34.5 _ 3.3 … 3.344.8 39.5 23.7 15.8 3.4 1.7 _ 0.2 … 0.2

42.1 36.7 29.4 7.3 3.2 2.0 _ 0.2 … 0.2

46.8 38.9 31.3 7.6 5.3 2.5 _ 0.2 … 0.2

60.7 53.3 33.2 20.1 4.4 2.9 _ 0.2 … 0.2

60.1 51.6 41.6 9.9 5.5 2.9 _ 0.2 … 0.2

73.5 66.7 37.6 29.1 4.2 2.4 _ 0.2 … 0.2

72.0 63.3 40.2 23.1 5.7 2.7 _ 0.3 … 0.3

63.8 56.8 49.5 7.3 4.1 2.6 _ 0.3 … 0.3

55.5 48.0 40.3 7.7 4.7 2.4 _ 0.4 … 0.4

72.0 64.0 44.8 19.2 4.9 2.8 _ 0.4 … 0.4

62.1 52.6 45.7 6.9 5.5 3.7 _ 0.4 … 0.4

59.7 49.7 39.8 9.9 3.4 6.2 _ 0.4 … 0.4

894.2 711.1 530.6 180.5 144.3 29.2 _ 9.6 … 9.6

60.1 52.9 34.7 18.3 5.0 2.1 _ 0.1 … 0.1

130.6 42.0 33.6 8.5 85.5 2.1 _ 0.9 … 0.9

58.3 49.4 40.4 9.0 6.6 2.2 _ 0.0 … 0.0

74.8 65.6 39.8 25.8 5.1 2.7 _ 1.4 … 1.4

60.0 52.0 44.0 8.1 4.8 2.3 _ 0.9 … 0.9

62.5 54.3 43.6 10.8 5.2 2.1 _ 0.8 … 0.8

83.8 74.5 48.2 26.2 5.9 2.7 _ 0.7 … 0.776.6 67.6 56.0 11.7 4.7 3.4 _ 0.8 … 0.8

65.6 57.6 43.9 13.7 4.9 2.3 _ 0.9 … 0.9

80.2 70.5 48.1 22.3 6.6 2.2 _ 0.9 … 0.9

65.5 58.0 47.5 10.5 4.6 1.9 _ 1.0 … 1.0

76.2 66.6 51.0 15.6 5.6 3.0 _ 1.0 … 1.0

894.2 711.1 530.6 180.5 144.3 29.2 0.0 9.6 0.0 9.6

34.5 26.3 30.3 -4.0 5.1 1.9 _ 1.2 … 1.0

78.7 65.9 36.4 29.6 9.6 2.0 _ 1.2 … 1.0

58.2 46.9 39.8 7.1 7.6 2.7 _ 1.0 … 1.0

94.4 84.1 46.4 37.6 5.9 3.6 _ 0.8 … 1.0

71.6 62.3 56.0 6.2 5.4 3.3 _ 0.7 … 1.0

70.9 59.7 52.9 6.8 6.9 3.7 _ 0.6 … 1.0

102.1 89.4 57.1 32.3 8.2 4.5 _ 1.3 1.0

73.2 62.5 54.8 7.7 5.3 5.4 _ 0.3 1.0

75.5 60.9 52.7 8.2 10.8 3.8 _ 3.9 1.0

107.9 94.4 55.5 38.9 9.5 4.1 _ 2.3 1.0

65.1 56.5 49.6 6.9 5.5 3.1 _ 0.6 1.0109.4 95.7 72.6 23.0 9.0 4.8 _ 1.3 1.0

2009

66.2 57.6 31.7 25.9 5.4 2.8 0.4

56.2 48.4 36.8 11.6 4.6 2.6 0.6

65.2 53.0 45.7 7.3 9.1 3.0 0.2

80.7 70.2 47.4 22.8 6.7 3.8 0.0

74.5 62.3 53.2 9.1 8.4 3.9 0.0

77.2 66.6 55.8 10.8 6.5 4.1 -0.1

May

J un

J an

Feb

Mar

Apr

Sep

Oct

NovDec

May

J un

J ul

Aug

J an

Feb

Mar

Apr

Nov

Dec

J ulAug

Sep

Oct

May

J un

2007

J an

Feb

Mar

Apr

Oct

Nov

Dec

Municipal own

source revenues

2004

2005

Donor grants

Interest income


YearTotal

revenues

Tax Revenues

Non-tax revenues

Feb

Mar

2008

Aug

Sep

Apr

May

J un

J ul

2006 J an

Source: Treasury department (MEF); Note: The 2005 expenditures do not include loans to KEK and Airport as well as donor grants.



TABLE 2.3

DOMESTIC TAX REVENUES

Year

Total

reported by

TAK

Tresaury report Presumptive tax Profit tax VAT Wage tax

Hotels and

restorants

tax

Individual

busineses

Interes divid,

llotar etcCorporate tax

PTK surcharge

taxUnxspecified taxes

2000 6.5 6.6 4.5 - - - 2.0 - - - -

2001 33.2 41.0 19.5 - 12.5 - 1.1 - - - -

2002 80.8 81.8 35.1 7.4 28.7 9.5 0.1 - - - -

2003 112.1 108.8 13.8 42.2 39.5 16.6 - - - - -

2004 103.9 114.2 12.8 29.8 42.6 18.7 - - - - -

2005 126.2 129.0 6.7 12.9 46.8 26.9 - 10.0 3.6 19.3 -

2006 162.6 167.5 2.3 9.4 48.3 29.2 - 15.1 5.8 31.2 21.3

2007 180.5 180.5 0.8 2.8 41.6 29.6 - 15.9 1.8 52.6 16.6 18.9

J an 17.9 15.2 3.2 7.8 5.1 1.5 - … … 0.3 -

Feb 5.9 7.7 0.2 0.2 3.6 1.7 - … 0.2 … -

Mar 8.0 6.1 0.3 2.3 3.1 2.2 - … 0.2 … -

Apr 15.8 18.9 0.3 0.7 3.4 2.6 - 2.8 0.3 5.7 -

May 8.2 7.8 0.2 0.3 5.1 2.2 - 0.1 0.2 … -

J un 5.8 7.9 0.2 0.3 2.9 2.2 - 0.0 0.2 … -

J ul 16.0 15.2 0.2 0.2 3.5 2.1 - 3.3 0.2 6.5 -

Aug 8.5 9.2 0.2 0.3 4.5 2.2 - 0.1 1.1 0.1 -

Sep 7.4 6.7 0.2 0.2 4.3 2.3 - 0.1 0.2 … -

Oct 17.4 19.1 0.8 0.2 3.9 2.2 - 3.5 0.3 6.5 -

Nov 7.2 7.7 0.7 0.1 3.7 2.2 - 0.1 0.3 0.0 -

Dec 8.1 7.6 0.2 0.4 3.6 3.4 - 0.1 0.3 0.1 -

2006 162.6 165.4 2.3 9.4 48.3 29.2 - 15.1 5.8 31.2 21.3

J an 17.4 15.8 0.4 0.3 4.0 1.8 - 3.5 0.6 6.7 0.2

Feb 6.0 7.6 0.1 0.2 3.2 1.9 - 0.1 0.4 0.0 -

Mar 9.5 8.0 0.3 0.7 3.6 2.6 - 0.7 0.4 1.1 -

Apr 19.0 20.3 0.2 0.4 2.7 2.9 - 3.1 0.4 5.9 3.4

May 7.8 10.0 0.2 0.3 3.8 2.6 - 0.1 0.6 0.2 -

J un 30.3 29.5 0.2 5.3 5.5 2.5 - 0.2 0.4 2.9 13.3

J ul 22.0 23.1 0.2 0.2 3.8 2.5 - 3.3 0.6 7.0 4.4

Aug 8.6 7.3 0.1 0.3 5.1 2.3 - 0.2 0.5 0.2 -

Sep 7.6 7.7 0.1 0.3 4.8 1.7 - 0.1 0.5 0.1 -

Oct 18.7 19.2 0.1 0.2 4.1 3.1 - 3.5 0.5 7.2 -

Nov 6.6 6.9 0.1 0.4 3.1 2.4 - 0.2 0.4 … -

Dec 9.2 9.9 0.1 0.9 4.7 2.7 - 0.2 0.5 … -

2007 180.5 180.5 0.8 2.8 41.6 29.6 - 15.9 1.8 52.6 16.6

J an 18.3 18.3 0.3 0.1 2.3 1.7 - 3.5 0.1 7.3 - 2.9

Feb 8.5 8.5 -0.2 0.1 3.7 2.0 - 0.2 0.0 0.5 - 2.1

Mar 9.0 9.0 0.1 0.1 3.9 2.0 - 0.2 0.0 0.5 - 2.2

Apr 25.8 25.8 0.0 0.3 1.3 2.1 - 3.6 0.2 15.7 0.2 2.5

May 8.1 8.1 0.1 0.1 3.0 1.8 - 0.2 0.0 0.7 - 2.2

J un 10.8 10.8 0.1 0.2 3.0 2.0 - 0.2 0.0 0.9 - 4.5

J ul 26.2 26.2 0.0 0.2 2.7 2.0 - 3.2 1.0 9.5 5.5 2.1

Aug 11.7 11.7 0.0 0.0 3.4 2.8 - 0.1 0.0 0.7 - 4.6

Sep 13.7 13.7 0.0 0.1 3.7 1.9 - 0.1 0.0 0.8 5.5 1.5

Oct 22.3 22.3 0.0 0.1 3.6 2.0 - 3.7 0.2 10.7 - 1.9

Nov 10.5 10.5 0.0 0.0 4.4 2.1 - 0.2 0.0 2.4 - 1.4

Dec 15.6 15.6 0.3 1.4 6.5 7.1 - 0.7 0.1 3.1 5.5 -9.1

2008

J an -4.0 -4.0 0.0 0.0 -4.2 0.0 0.0 0.0 0.1 0.0 0.0

Feb 29.6 29.6 0.1 0.2 7.0 6.0 4.1 0.2 11.6 0.0 0.3

Mar 7.1 7.1 0.1 0.1 2.0 3.2 0.5 0.0 1.1 0.0 0.0

Apr 37.6 37.6 0.1 1.5 4.9 4.3 4.3 0.2 15.7 6.6 0.0

May 6.2 6.2 0.1 0.1 1.0 3.6 0.2 0.0 1.3 0.0 0.0

J un 6.8 6.8 0.1 0.1 0.6 4.0 0.3 0.0 1.6 0.0 0.1

J ul 32.3 32.3 0.0 0.3 4.6 3.5 3.8 0.2 12.7 6.6 0.6

Aug 7.7 7.7 0.0 0.0 3.1 3.2 0.3 0.0 0.9 0.0 0.1

Sep 8.2 8.2 0.1 0.0 3.2 3.2 0.3 0.0 1.1 0.0 0.2

Oct 38.9 38.9 0.1 1.1 6.1 3.9 4.1 0.2 16.4 6.6 0.3

Nov 6.9 6.9 0.1 0.1 2.3 3.0 0.3 0.1 0.9 0.0 0.1

Dec 23.0 23.0 0.6 0.8 6.6 5.8 0.7 0.1 1.8 6.6 0.0

Flow data, in millions of euros

Source: Tax Administration of Kosova



TABLE 2.4

BORDER TAX REVENUES

Year Total

(Treasury)

Total

(Customs Administration)Customs Excise Sales VAT Other

2004 436.0 435.9 70.1 176.3 - 186.4 3.0

2005 434.4 435.3 72.4 164.1 - 196.4 2.4

2006 457.0 457.7 82.3 161.9 - 210.8 2.7

2008

J an 30.3 30.3 4.1 12.0 14.2 0.1

Feb 36.4 36.4 5.5 11.7 19.0 0.1

Mar 39.8 39.8 6.3 12.9 20.4 0.2

Apr 46.4 46.4 7.5 16.0 22.8 0.2

May 56.0 56.0 7.8 20.8 27.1 0.4

J un 52.9 52.9 8.7 15.8 28.2 0.2

J ul 57.1 57.1 9.0 19.2 28.5 0.4

Aug 54.8 54.8 8.1 20.0 26.5 0.2

Sep 52.7 52.7 8.4 15.8 28.2 0.3

Oct 55.5 55.5 8.9 17.2 29.0 0.4

Nov 49.6 49.6 7.6 17.8 23.9 0.2

Dec 72.6 72.6 11.3 24.6 36.5 0.2

2009

J an 31.7 31.7 0.9 2.0 2.3 0.1

Feb 36.8 36.8 6.3 10.7 19.7 0.2

Mar 45.7 45.7 7.5 14.2 23.8 0.1

Apr 47.4 47.4 7.4 14.8 24.9 0.3

May 53.2 53.2 8.1 17.8 27.0 0.2

J un 55.8 55.8 9.5 17.9 28.3 0.1

Flow data, in millions of euros




TABLE 2.5

TOTAL BUDGET EXPENDITURES

Wages and Salaries Goods and Services UtilitiesSubsidies and

transferes

674.1 529.2 194.6 142.8 - 191.8 144.9635.4 502.3 203.8 124.7 18.4 155.4 133.2

662.0 506.7 208.5 127.3 17.9 153.0 155.3

2007

16.4 16.4 5.8 1.3 0.3 9.0 0.0

66.2 53.9 25.6 9.2 1.8 17.3 12.3

52.7 45.7 19.0 11.4 1.9 13.3 7.1

40.6 36.9 15.2 8.6 1.7 11.3 3.7

56.0 46.6 19.7 9.0 1.7 16.3 9.4

44.6 38.8 17.0 9.6 1.6 10.7 5.8

47.0 39.3 17.2 9.4 1.6 11.1 7.7

42.2 36.0 17.3 7.2 1.0 10.5 6.1

41.3 30.7 11.0 7.6 0.9 11.1 10.5

74.4 44.9 18.9 11.5 1.2 13.2 29.5

71.5 54.6 22.0 16.6 1.6 14.4 16.9

109.1 62.9 19.7 25.9 2.6 14.7 46.2

2008

31.0 31.0 7.5 2.3 0.2 20.9 0.0

42.4 42.4 18.1 6.7 1.5 16.2 0.0

53.2 42.0 9.4 9.3 1.9 21.2 11.2

69.1 63.1 34.4 11.6 2.3 14.7 6.1

56.9 43.5 19.1 9.8 1.5 13.1 13.4

74.1 45.9 20.0 10.0 1.0 14.9 28.1

62.9 45.4 19.4 11.2 1.6 13.2 17.5

63.6 39.4 17.3 7.9 0.8 13.3 24.3

83.7 49.9 19.5 10.0 1.2 19.1 33.7

89.9 53.3 20.0 12.2 1.4 19.8 36.6

79.7 37.5 1.8 14.1 1.4 20.3 42.1

235.9 101.9 40.5 34.8 3.6 23.0 134.0

2009

33.8 33.8 8.6 2.6 0.5 22.2 0.0

67.5 66.5 30.2 7.8 1.9 26.6 1.0

60.9 55.2 22.7 10.3 1.9 20.3 5.7

64.0 51.6 21.4 10.4 2.2 17.6 12.4

81.1 53.7 22.4 10.2 1.5 19.6 27.4

89.8 56.9 21.7 13.8 1.0 20.4 33.0

Sep

Oct

Nov

Dec

May

J un

2007

J an

Feb

Mar

Apr

J ul

Aug

20062005

Capital expenditures


Year Total expenditures

Current expenditures

Sep

Oct

Nov

Dec

May

J un

J an

Feb

Mar

Apr

J ul

Aug

May

J un

J an

Feb

Mar

Apr

Source: Treasury department (MEF) Note: The 2005 expenditures do not include loans to KEK and Airport as well as donor grants.



TABLE 2.6

TOTAL BUDGET EXPENDITURES BY FUNCTION OF GOVERNMENT

YearGeneral Public

ServicesDefence

Public Order and

SafetyEconomic Affairs

Environmental

Protection

Housing and

Community AmenitiesHealth

Recreation, Culture

and ReligionEducation Social Protection Total

2004 164.9 17.8 79.0 158.4 1.4 20.3 86.2 9.2 108.4 103.6 749.

2005 132.1 15.2 82.8 130.6 0.8 13.5 69.8 6.0 104.2 119.2 674.

2006 152.7 18.1 59.6 99.6 1.1 9.8 65.2 5.2 101.4 122.7 635.

2007 124.4 17.7 74.8 123.0 1.7 14.7 68.3 8.4 110.2 118.3 661.

J an 2.5 0.7 3.1 0.3 0.0 0.0 0.3 0.1 0.2 9.2 16.

Feb 7.0 0.8 5.6 22.7 0.2 0.5 6.3 0.6 14.8 7.7 66.

Mar 7.8 1.1 6.1 7.8 0.1 0.6 7.3 0.8 9.2 12.0 52.

Apr 7.8 1.4 5.3 3.1 0.1 0.4 4.3 0.5 7.4 10.3 40.

May 10.0 1.2 5.4 8.5 0.1 3.5 6.3 1.0 9.9 10.1 56.

J un 8.6 1.3 5.8 4.1 0.1 0.8 5.3 0.5 8.4 9.5 44.

J ul 9.8 1.1 4.5 3.8 0.2 1.3 6.4 0.9 9.1 9.9 47.

Aug 7.3 1.3 5.6 4.1 0.1 0.7 5.2 0.6 8.3 9.0 42.

Sep 10.8 1.2 4.9 5.7 0.1 1.1 4.4 0.4 2.5 10.1 41.

Oct 12.6 1.8 7.5 22.6 0.2 1.1 6.6 0.9 11.3 10.0 74.

Nov 15.2 2.5 7.7 11.9 0.2 1.6 6.0 1.0 15.1 10.2 71.

Dec 24.9 3.3 13.5 28.5 0.2 3.0 9.9 1.1 14.0 10.1 108.

2008

J an 2.8 0.7 1.1 11.9 0.0 0.2 2.4 0.1 2.1 9.7 31.

Feb 5.4 0.8 5.2 7.6 0.1 0.3 3.7 0.5 9.7 9.3 42.

Mar 6.9 0.4 5.5 18.8 0.1 0.3 2.2 0.3 7.1 11.6 53.

Apr 15.0 1.9 7.4 4.3 0.2 0.8 8.9 1.0 16.2 13.4 69.

May 8.9 1.6 5.6 10.0 0.1 1.0 5.9 0.9 11.1 11.9 56.

J un 10.7 1.1 5.4 25.6 0.2 2.1 5.9 0.7 10.3 12.1 74.

J ul 11.2 1.1 9.1 7.7 0.1 1.1 7.6 0.9 11.9 12.0 62.

Aug 12.6 1.3 5.3 17.2 0.1 1.0 4.8 0.6 8.7 12.0 63.

Sep 20.8 1.4 5.6 21.9 0.2 2.5 5.5 1.7 11.6 12.5 83.

Oct 18.2 1.5 6.3 28.6 0.2 1.2 7.0 1.4 13.3 12.1 89.

Nov 17.8 1.1 3.4 30.7 0.3 2.9 5.5 1.0 4.4 12.6 79.

Dec 53.9 5.5 19.6 90.9 0.7 4.0 21.3 3.4 23.7 13.1 235.

2009

J an 3.3 0.7 3.2 11.4 0.0 0.1 2.5 0.2 1.0 11.4 33.

Feb 7.4 1.0 6.0 18.0 0.1 0.5 6.0 0.6 16.6 11.2 67.

Mar 9.2 1.0 6.8 9.7 0.1 0.6 5.3 0.9 12.8 14.6 60.

Apr 13.4 0.9 6.4 7.6 0.1 0.8 7.1 0.8 12.8 14.1 64.

May 19.6 1.9 6.6 18.3 0.2 1.4 6.4 1.2 11.9 13.7 81.

J un 21.7 2.6 6.3 23.2 0.2 3.7 5.8 1.2 11.6 13.6 89.

Cumulative within the quarter, in millions of euros

Source: Treasury department (MEF)



TABLE 3.1

BPK BALANCE SHEET

J un J ul Aug Sep Oct Nov Dec J an Feb Mar Apr May J un

Currency and deposits 237.9 436.1 822.8 931.4 967.2 988.5 997.7 780.5 726.0 568.7 474.2 466.9 452.4 409.8 451.6 423.

Currency (Cash) 24.5 11.1 63.8 60.7 70.2 61.2 30.1 45.7 64.6 39.7 79.5 72.6 40.5 48.8 62.6 38.

Deposits in EUR (abroad) 213.4 424.9 759.0 870.7 897.0 927.3 967.6 734.8 661.4 529.0 394.7 394.3 412.0 361.0 389.0 385.0

Transferable deposits 23.0 22.4 2.0 0.5 0.6 0.8 0.8 0.4 117.8 10.4 0.6 50.3 26.5 11.2 36.6 28.

Other deposits 190.5 402.6 757.1 870.2 896.4 926.5 966.8 734.4 543.6 518.6 394.0 344.0 385.5 349.8 352.5 356.4

Securities other than shares 159.5 203.6 229.5 229.0 229.0 229.1 228.4 471.7 502.5 541.3 682.7 698.0 722.7 787.8 763.4 763.6

Nonresidents 159.5 203.6 229.5 229.0 229.0 229.1 228.4 471.7 502.5 541.3 682.7 698.0 722.7 787.8 763.4 763.6

Other accounts receivable 0.9 2.0 5.6 5.4 5.1 6.3 4.6 1.5 1.9 1.0 0.4 0.4 0.8 0.9 1.0 1.0

Nonfinancial assets 0.5 1.4 2.2 2.1 2.1 2.0 2.1 2.1 2.0 2.2 2.2 2.2 2.3 2.1 2.2 2.

TOTAL ASSETS 398.8 643 1,060 1,168 1,203 1,226 1,233 1,256 1,233 1,113 1,159 1,167 1,178 1,201 1,218 1,190

Transferable deposits 373.8 609.4 1,010 757.5 775.9 796.3 811.3 994.7 961.8 1,064 1,115 1,124 1,134 1,105 1,112 1093.6

Other depository corporations 82.5 94.5 113.6 117.7 119.3 124.4 133.1 145.7 130.8 137.2 135.3 150.9 163.7 169.8 178.9 162.0

Other financial corporations 24.4 26.7 22.4 18.4 16.7 16.6 29.7 38.2 41.7 49.9 61.3 67.6 72.8 73.8 77.7 82.

Insurance companies 17.4 18.5 14.9 10.6 9.9 9.8 13.1 14.9 14.9 15.4 20.9 20.9 20.6 14.2 12.1 10.6

Pension funds 4.2 4.1 7.5 7.7 6.8 6.8 16.6 23.3 26.8 34.5 40.4 46.7 52.2 59.6 65.6 71.5

Other fin. intermediaries 2.8 … … … … … … … … … … … … … … …

Central government 225.7 472.9 849.4 600.9 618.6 634.0 628.2 804.6 783.9 870.5 913.8 899.8 894.9 858.8 852.7 849.of which: KAP 113.1 275.0 398.1 429.6 430.7 430.7 433.2 433.1 434.7 434.5 404.3 405.1 409.7 410.1 424.8 429.

Social security fund … … … … … … … … … … 3.5 3.1 0.4 0.4 0.4 0

Local government 1.6 0.4 3.2 4.3 5.2 5.2 4.3 4.7 3.9 5.3 … … … … … …

UNMIK 3.1 0.1 … … … … … … … … 1.6 2.3 1.8 2.4 2.6 …

Public nonfinancial corporations 37.6 10.5 21.1 16.2 16.1 16.2 16.0 1.6 1.5 1.5 … … … … … …

Other nonfinancial corporations … … … … … … … … … … … … … … … …

Other resident sectors … … … … … … … … … … … … … … … …

Other deposits 4.1 8.0 10.6 370.3 386.1 386.4 379.3 219.3 228.9 7.2 1.8 1.8 1.8 51.8 61.8 51.8

Central government __ __ … 359.5 375.3 375.6 368.5 210.3 219.9 … … … … 50.0 50.0 50

Other financial corporations 4.1 8.0 10.6 10.8 10.8 10.8 10.8 9.0 9.0 7.2 1.8 1.8 1.8 1.8 11.8 1.8

Other accounts payable 0.5 0.2 6.1 2.0 2.4 3.4 1.7 0.8 1.1 0.2 0.1 0.1 0.1 0.6 0.8 0.6

Shares and other equity 20.4 25.5 33.8 38.1 39.0 39.7 40.4 40.9 40.7 41.4 42.1 41.9 42.6 42.9 43.2 43.

Funds contributed by owners 10.0 10.0 20.0 20.0 20.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0

Retained earnings 3.0 6.4 9.2 4.4 5.2 6.0 6.7 7.2 7.0 7.5 0.4 0.7 1.3 1.7 2.0 2.3

General and special reserves 6.6 8.5 4.5 13.7 13.7 3.7 3.7 3.7 3.7 3.7 11.7 11.2 11.3 11.2 11.2 11.

Grants from donors 0.8 0.7 … … … … … … … 0.2 … … … … … …

TOTAL L IABILITIES 398.8 643.1 1,060 1,168 1,203 1,226 1,233 1,256 1,233 1,113 1,159 1,167 1,178 1,201 1,218 1,190

2009

Outstanding amounts, in millions of EUR

20082005 2006 2007Description

.

.

Source: Central Bank of Kosovo



TABLE 3.2

COMMERCIAL BANKS’ BALANCESHEET


Cash and balances with CBK 131.7 141.1 188.4 184.5 195.9 192.8 195.2 211.2 196.5 218.2 205.1 218.9 236.6 237.8 249.3 241.9

Cash 50.1 52.3 80.8 67.5 76.9 69.9 63.8 66.5 66.8 81.4 70.2 69.0 72.9 67.9 70.5 80.0

Balances with CBK 81.6 88.8 107.5 117.0 119.0 122.9 131.4 144.6 129.7 136.8 134.9 149.9 163.7 169.9 178.9 161.9

Reserve and current accounts 81.6 88.8 107.5 117.0 119.0 122.9 131.4 144.6 129.7 136.8 134.9 149.9 163.7 169.9 178.9 161.9

Balances with commercial banks 221.9 243.3 208.1 200.4 232.4 283.3 299.9 267.7 247.7 283.9 280.6 277.9 274.7 263.0 269.1 286.7

Sight accounts 2.5 0.1 … … … … … … … … … … … … …

Time deposits 5.5 0.5 ,,, ,,, ,,, ,,, ,,, ,,, ,,, ,,, ,,, ,,, ,,, ,,, ,,, …

Nonresidents 192.9 218.2 173.4 150.3 180.9 229.5 244.3 205.8 183.9 232.3 220.4 220.5 216.5 203.6 205.4 281.5

Securities 82.9 99.4 78.9 43.4 34.8 39.9 41.5 42.3 41.8 40.5 40.7 40.9 36.7 26.9 17.0 13.3

Investment portfolio … 4.5 … … … … … … … … … … … … …

Trading portfolio 82.9 94.9 78.9 43.4 34.8 39.9 41.5 42.3 41.8 40.5 40.7 40.9 36.7 26.9 17.0 13.3

Gross loans and lease financing 513.9 636.6 892.1 1,089.7 1,114.0 1,124.2 1,130.2 1,160.8 1,187.9 1,183.4 1,188.6 1,211.2 1,229.8 1,238.9 1,267.9 1,280.9

Other nonfinancial corporations 387.9 490.5 691.3 850.9 863.0 868.0 867.1 890.3 911.0 901.7 905.5 926.0 939.3 943.1 964.7 968.5

Households 126.0 146.1 200.6 238.6 250.8 256.0 262.4 269.8 276.1 281.0 281.8 284.0 289.4 294.7 301.4 311.2

Fixed assets 16.9 23.0 27.0 33.4 33.8 34.2 35.0 35.6 35.8 39.0 38.8 39.0 39.3 38.9 39.4 40.1

Other assets 17.0 17.9 37.3 48.2 46.1 44.5 47.7 43.5 39.3 43.1 39.7 37.5 46.1 53.3 67.0 64.3

TOTAL ASSETS 984.4 1,161 1,432 1,600 1,657 1,719 1,749 1,761 1,749 1,808 1,794 1,825 1,863 1,859 1,910 1,927.2

Balances from other banks 23.0 30.3 25.9 32.6 33.6 31.4 32.2 31.2 31.5 34.9 38.9 42.0 52.2 46.2 51.8 41.8

Debts to clients 843.0 928.4 1,145 1,264 1,317 1,372 1,404 1,415 1,387 1,444 1,422 1,444 1,468 1,466 1,501 1,513.0

Deposits 836.7 924.3 1,142 1,264 1,317 1,372 1,404 1,415 1,387 1,444 1,422 1,444 1,468 1,466 1,501 1,513.0 Transferable deposits 296.6 308.9 380.0 395.7 405.9 406.2 483.7 412.5 372.8 429.8 390.0 390.3 414.7 398.1 472.0 417.4

Central government 0.0 1.1 1.5 2.6 1.1 0.8 1.6 2.2 1.1 1.3 2.9 1.5 3.5 1.2 1.2 1.5

Local government 2.9 5.0 0.2 0.6 0.1 0.1 0.4 0.6 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1

Other financial corp. 7.2 4.9 5.3 12.8 12.8 15.5 11.1 10.9 12.1 13.8 11.4 10.7 10.9 13.4 10.5 8.3

Public nonfin. Corp. 30.0 24.3 28.5 41.4 29.2 28.6 99.9 29.8 16.8 13.8 17.4 18.2 17.8 20.6 62.9 25.0

Other nonfin. Corp. 76.8 96.4 133.5 127.3 149.0 142.9 148.6 141.9 137.8 176.0 144.9 128.2 134.3 125.0 132.2 136.4

Households 155.5 156.2 186.8 189.9 193.8 194.4 195.7 200.3 174.5 186.2 180.8 195.4 215.3 204.0 210.0 211.2

NPISH 10.7 7.8 12.0 8.1 7.2 9.9 10.1 11.2 9.0 8.0 7.7 7.6 8.3 9.8 10.5 8.4

Nonresidents 13.5 13.3 12.1 12.9 12.7 14.0 16.3 15.5 20.9 30.6 24.7 28.6 24.5 23.6 44.6 26.5

Other deposits 540.1 615.4 762.4 868.7 910.7 966.1 920.4 1,002 1,014 1,014 1,032 1,054 1,054 1,068 1,029 1,095.5

Other financial corp. 20.2 23.0 31.2 38.0 41.7 40.0 40.8 42.1 41.9 45.0 42.9 43.4 43.1 45.3 52.6 55.9

Public nonfin. Corp. 181.3 193.3 188.4 198.3 214.0 223.9 148.6 233.1 255.7 250.1 244.0 244.1 249.6 231.8 195.8 245.3

Other nonfin. Corp. 33.7 27.6 43.8 44.5 49.9 59.5 53.3 48.5 48.0 51.4 51.4 69.0 69.4 78.7 78.7 72.1

Households 298.9 359.5 489.2 576.1 594.9 634.2 655.8 657.3 653.4 656.7 681.6 685.1 678.9 681.2 683.2 691.8

NPISH 1.6 5.5 3.3 2.8 2.6 0.6 2.5 3.5 2.8 2.8 2.8 2.7 2.6 3.1 3.1 3.1

Nonresidents 4.3 5.4 4.0 9.1 7.4 7.9 19.3 17.6 12.3 8.3 9.1 9.7 10.0 27.4 14.4 28.4

Other borrowings (incl non-neg. CD) 6.4 4.2 2.7 … … … … … … … … … … … …

Nonresidents 6.4 4.2 2.7 … … … … … … … … … … … …

Other liabilities 37.3 92.1 102.0 112.4 114.9 119.1 120.4 121.7 133.3 129.8 134.9 140.0 141.7 140.4 147.8 152.1 of whixh: Provision for loans 21.1 31.2 41.4 49.6 52.1 52.1 51.8 53.7 53.5 53.0 55.3 56.4 57.7 59.9 61.9 65.0

Subordinated debt 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 16.9

Nonresidents 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 16.9

Own resources 74.0 103.3 151.9 183.2 185.0 189.0 185.7 186.6 190.2 192.5 191.0 192.0 193.8 199.5 202.4 203.3

Share capital 62.4 78.4 114.9 129.9 129.9 129.9 131.9 131.9 131.9 145.9 145.9 145.9 145.9 148.4 149.4 149.4

Contingency reserve 0.6 -0.7 0.5 0.3 0.2 0.2 0.0 -0.3 -0.4 -0.3 -0.6 -0.1 0.1 0.2 0.4 0.6

Profit/loss of the year 13.5 20.2 33.2 18.6 20.4 24.5 29.4 30.3 34.0 36.3 … … … … … 10

Retained profit/loss -2.6 5.5 3.3 34.5 34.5 34.5 24.5 24.5 24.5 10.5 2.4 3.0 4.6 6.8 9.6 43.5

…

…

…

…

.4

TAL LIABILITIES 984.4 1,161 1,432 1,600 1,657 1,719 1,749 1,761 1,749 1,808 1,794 1,825 1,863 1,859 1,910 1,927.1

Description2008

2005 2006 20072009


TO




TABLE 3.3

COMMERCIAL BANKS’ LOANS, BY SECTORS

J un J ul Aug Sep Oct Nov Dec J an Feb Mar Apr May J un J ul

Government __ __ __ __ __ __ __ __ __ __ - - - - - - -

Financial corporations __ __ __ __ __ __ 0.6 0.6 0.6 0.6 1.1 1.1 1.0 1.0 1.7 0.8 -

Nonfinancial corporations 387.9 490.5 691.5 851.1 863.2 868.2 867.2 890.5 911.2 901.8 905.7 926.1 939.4 943.2 964.8 968.7 -

Public nonfinancial corporations … … 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 -

Up to 1 year … … - - - - - - - - - - - - - - -

Over 1 year and up to 2 years … … - - - - - - - - - - - - - - -

Over 2 years … … 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 -

Other nonfinancial corporations 387.9 490.5 691.3 850.9 863.0 868.0 867.1 890.3 911.0 901.7 905.5 925.9 939.3 943.1 964.7 968.5 -

Up to 1 year 117.9 128.7 174.0 203.7 201.9 200.4 192.9 190.8 207.1 191.0 200.1 223.3 230.2 233.9 246.5 238.9 -

Over 1 year and up to 2 years 125.2 127.7 122.6 126.7 125.2 122.2 119.4 129.7 130.7 132.3 129.9 120.2 118.2 118.0 117.3 123.9 -

Over 2 years 144.7 234.1 394.6 520.5 535.9 545.4 554.7 569.8 573.2 578.4 575.5 582.4 590.9 591.2 600.8 605.8 -

Other domestic sectors 126.0 146.1 200.6 238.6 250.8 256.0 262.4 269.8 276.1 281.0 281.8 284.0 289.4 294.7 301.4 311.2 -

Households 126.0 146.1 200.6 238.6 250.8 256.0 262.4 269.8 276.1 281.0 281.8 284.0 289.4 294.7 301.4 311.2 -

Up to 1 year 19.5 19.7 24.0 16.3 17.1 17.4 17.4 17.9 19.9 20.9 22.1 22.7 23.6 24.5 25.4 26.4 -

Over 1 year and up to 2 years 21.0 24.7 29.6 28.4 30.5 30.6 31.1 31.5 32.0 30.9 30.4 28.8 30.5 29.8 29.7 30.8 -

Over 2 years 85.4 101.7 147.1 194.0 203.3 208.0 213.9 220.4 224.2 229.2 229.3 232.5 235.2 240.4 246.3 254.0 -

TOTAL 513.9 636.6 892.1 1,090 1,114 1,124 1,130 1,161 1,188 1,183 1,189 1,211 1,230 1,239 1,268 1,281 0

2009


20082005 2006 2007Description


TABLE 3.5

COMMERCIAL BANKS’ LOANS, BY INDUSTRY


Agri cul ture 12.5 16.4 29.0 35.9 36.7 37.3 37.6 37.7 37.5 37.4 37.4 42.9 44.2 39.0 38.6 38.9

Industry, energy and construction 74.2 97.7 144.5 169.0 172.8 178.8 167.0 162.9 163.4 160.2 162.4 175.3 193.9 192.4 200.7 222.9

Mining 0.5 0.5 5.6 0.6 0.6 0.6 0.6 0.8 0.8 0.8 0.8 4.1 3.7 3.6 0.8 16.5

Industry 48.1 61.9 89.4 109.5 111.5 112.6 100.6 96.7 96.4 93.8 92.2 101.5 115.0 110.2 123.3 128.1

Manufacturing ( Food, Textile, etc) 44.0 54.9 72.2 77.5 79.4 79.5 79.5 77.4 77.2 75.1 74.3 78.4 86.3 83.1 84.0 88.8

Manufacturing (Oil ,Chem., Synth. etc) 3.5 6.3 16.1 18.2 18.6 19.7 19.5 17.9 17.7 17.1 16.3 21.3 26.9 25.4 25.4 25.5

Electricity, gas and water 0.6 0.7 1.2 13.7 13.5 13.5 1.6 1.5 1.5 1.6 1.6 1.7 1.8 1.8 13.9 13.8

Construction 25.6 35.3 49.5 59.0 60.7 65.6 65.9 65.5 66.2 65.6 69.3 69.7 75.1 78.6 76.6 78.3

Services 301.1 376.4 518.0 646.2 653.7 652.1 663.1 690.4 710.8 704.8 707.0 709.0 702.4 712.8 727.1 707.9

Trade 249.7 307.3 416.1 490.8 489.9 490.9 498.0 499.6 508.5 504.7 507.5 548.9 536.7 524.9 520.7 534.9

Wholesale and retail trade 209.6 259.5 344.6 426.8 423.5 423.8 431.3 434.3 441.4 437.5 438.5 469.3 459.1 447.6 448.0 460.1

Hotel and restaurants 28.0 29.5 44.9 42.4 44.0 44.0 43.6 43.5 45.0 45.1 45.2 47.7 47.6 47.7 48.0 49.9

Other trade 12.1 18.3 26.6 21.6 22.4 23.0 23.1 21.8 22.1 22.0 23.9 32.0 30.0 29.6 24.6 24.9

Fin. services, expol. real estate etc. 2.7 1.1 1.5 9.6 10.4 6.6 6.4 5.8 6.0 6.0 5.7 8.7 11.0 10.8 7.9 7.8

Other services 48.7 68.0 100.4 145.7 153.3 154.7 158.0 184.4 195.8 194.2 193.8 151.4 154.7 177.1 198.6 165.1

TOTAL 387.9 490.5 691.5 851.1 863.2 868.2 867.8 891.1 911.8 902.4 906.8 927.2 940.4 944.2 966.5 969.7

Description


2009200820072005 2006




TABLE 3.4

DEPOSITS AT COMMERCIAL BANKS


Government 1/ 2.9 7.0 4.1 3.2 1.3 0.8 2.0 2.8 1.3 1.4 3.0 1.6 3.6 1.2 2.3 1.5

Transferable deposits 2.9 6.0 1.7 3.2 1.2 0.8 2.0 2.8 1.3 1.4 3.0 1.6 3.6 1.2 1.3 1.5

Financial corporations 35.4 34.0 39.6 50.8 54.5 55.5 52.9 53.1 55.7 63.8 63.6 63.0 60.8 66.6 67.8 69.2

Other depository corporations 8.1 0.1 3.1 … … … 1.0 … 1.2 5.0 9.3 8.9 6.8 7.4 4.7 5.1

Transferable deposits 1.1 0.1 0.1 … … … … … 1.2 2.7 6.9 7.9 6.8 3.2 1.0 0.4

Other deposits 7.0 … 2.9 … … … 1.0 … - 2.3 2.4 1.0 - 4.2 3.7 4.0

over 1 month and up to 3 months 5.0 … … … … … … … - - - - - - - -

over 3 months and up to 1 year 1.5 … … … … … … … - - - - - - - -

Other financial intermediaries 5.8 2.4 5.7 1.8 3.0 2.4 2.6 4.1 5.7 6.5 4.4 4.0 4.2 5.2 5.9 5.2


Other deposits 2.1 0.5 3.4 1.1 2.0 1.2 1.6 2.8 3.4 4.5 2.1 2.0 2.2 2.2 2.7 2.0

up to 1 month 0.0 … … 0.1 1.0 0.1 0.6 0.8 1.5 2.6 0.2 0.4 0.5 0.6 1.4 0.5

over 1 month and up to 3 months 0.8 0.5 2.7 … … … … … - - - - - - - 0.7

over 3 months and up to 1 year 1.3 0.0 0.7 1.0 1.0 1.0 1.0 1.0 1.0 0.9 1.0 1.0 1.0 1.0 0.7 -

Insurance Companies 1/ 18.8 24.7 28.7 27.4 32.0 33.5 29.6 29.5 28.9 32.4 30.1 29.9 29.7 33.9 34.9 36.7


Other deposits 15.3 22.3 26.6 23.5 26.2 25.4 25.8 26.0 24.7 26.7 27.0 27.2 26.7 28.9 30.0 31.0

up to 1 month 5.3 0.5 2.0 0.1 0.1 1.8 2.0 1.4 1.8 2.1 1.8 1.4 2.0 3.6 3.2 2.2

over 1 month and up to 3 months 1.9 2.9 0.2 0.3 0.1 2.1 - - 0.1 0.7 0.7 0.4 0.7 0.5 0.4 0.1

over 3 months and up to 1 year 8.2 17.3 16.9 16.6 18.6 16.5 17.8 17.3 15.4 16.3 15.9 18.6 18.4 19.7 21.5 24.1 Pension Funds 1/ . 0.4 0.4 21.2 19.1 19.2 19.2 18.8 19.5 19.4 19.2 19.5 19.4 19.5 21.7 21.5

Transferable deposits . 0.4 0.4 8.1 5.9 6.0 6.0 5.8 5.9 5.9 5.7 5.7 5.6 5.7 2.2 2.0

Other deposits . … … 13.1 13.2 13.2 13.2 13.0 13.5 13.5 13.4 13.8 13.8 13.8 19.5 19.5

Financial auxiliaries 1/ 2.8 0.5 1.7 0.4 0.4 0.4 0.5 0.5 0.4 0.4 0.6 0.6 0.7 0.6 0.6 0.7


Other deposits 2.8 0.3 1.2 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.4 0.4 0.4 0.4 0.6

Nonfinancial corporations 321.8 341.6 394.3 411.4 442.1 454.8 450.5 453.3 458.2 491.3 457.8 459.6 471.3 456.2 469.6 479.1

Public nonfinancial corporations 1/ 211.3 217.6 217.0 239.0 243.2 252.5 248.6 262.8 272.4 263.9 261.4 262.4 267.6 252.6 258.7 270.4


Other deposits 181.3 193.3 188.4 198.3 214.0 223.9 148.6 233.1 255.7 250.1 244.0 244.2 249.7 231.9 195.8 245.3

up to 1 month 23.9 19.9 105.6 90.7 104.4 118.8 39.2 36.9 38.7 21.8 24.2 26.9 19.6 27.5 11.3 36.8

over 1 month and up to 3 months 12.8 19.4 21.4 22.3 29.0 38.2 38.9 49.3 45.5 47.2 25.7 21.8 25.7 27.6 29.5 23.7

over 3 months and up to 1 year 119.5 114.3 44.8 74.0 69.9 63.7 65.3 141.6 166.2 175.8 188.9 190.3 199.2 171.6 149.8 172.8

over 1-year and up to 2 years 25.3 39.7 16.7 11.3 10.7 3.1 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 12.0

Other nonfinancial corporations 1/ 110.5 124.0 177.3 172.5 198.9 202.4 201.9 190.5 185.7 227.4 196.3 197.2 203.7 203.7 210.8 208.6


Other deposits 33.7 27.6 43.8 44.5 49.9 59.5 53.3 48.5 48.0 51.4 51.4 69.0 69.4 78.7 78.7 72.1

up to 1 month 6.3 6.4 18.2 22.9 21.6 33.9 24.6 22.9 20.8 23.5 23.1 35.8 33.7 30.7 29.5 29.8



over 1-year and up to 2 years 5.1 1.8 3.9 2.5 2.3 4.1 1.6 2.1 2.1 2.1 2.1 2.4 2.2 2.5 5.1 5.2

over 2 years 0.7 3.0 2.0 7.4 7.6 7.5 7.6 7.1 7.2 7.3 7.4 8.7 9.6 9.6 10.5 0.9

Other domestic sectors 466.7 529.0 691.3 776.9 798.3 838.9 863.8 872.0 839.5 853.4 872.6 890.6 904.7 897.8 906.5 913.1

Households 454.4 515.7 676.0 766.0 788.5 828.3 851.2 857.3 827.7 842.7 862.1 880.3 893.9 884.9 893.0 901.7


Other deposits 298.9 359.5 489.2 576.1 594.6 633.9 655.5 657.0 653.2 656.5 681.3 684.8 678.6 680.9 682.9 690.4

up to 1 month 91.1 118.0 168.7 203.1 212.7 218.6 222.1 220.1 217.6 207.4 212.2 220.4 229.6 234.7 235.0 238.7



over 1 year and up to 2 years 27.0 26.6 77.3 78.9 56.9 64.4 68.4 69.9 69.2 67.9 67.2 65.7 65.4 65.5 64.0 65.3

over 2 years 19.3 37.1 50.3 60.9 55.5 59.0 61.2 63.8 63.8 63.0 65.6 67.4 67.6 69.1 70.2 71.1

NPISH 1/ 12.3 13.3 15.3 10.9 9.8 10.6 12.6 14.7 11.8 10.7 10.5 10.3 10.8 12.8 13.6 11.5


Other deposits 1.6 5.5 3.3 2.8 2.6 0.6 2.5 3.5 2.8 2.8 88.4 85.8 85.6 91.9 87.0 93.9

up to 1 month 0.1 3.5 2.2 2.2 2.3 0.3 2.3 3.0 2.3 2.3 2.5 2.5 2.3 2.8 2.9 2.8

over 1 month and up to 3 months 1.5 2.0 1.0 … … … … … 0.2 0.2 0.1 - 0.2 0.1 - -

Nonresidents 17.9 18.7 16.1 21.9 20.1 21.9 35.6 33.1 33.2 38.9 33.8 38.3 34.6 51.0 59.1 54.0

TOTAL 844.7 930.3 1,145 1,264 1,316 1,372 1,405 1,414 1,388 1,449 1,431 1,453 1,475 1,473 1,505 1,517


20092008Description 2005 2006 2007

Source: Central Bank of Kosovo Note: There are methodological breaks for periods Dec. 2000-Feb. 2003, and Mar. 2003 - May 2004.1/ Till May 2004 includes government, insurance companies and pension funds, financial auxiliaries, nonfinancial (public and other) corporations and NPISH;2/ Till May 2004 includes other depository corporations and other financial intermediaries;



TABLE 3.5

COMMERCIAL BANKS’ EFFECTIVE INTEREST RATES


Nonfinancial corporations

Transferable deposits (outstanding amounts) 0.26 0.39 0.48 0.59 0.61 * 0.69 0.57 0.92 0.53 0.72 0.71 0.85 0.71 * 0.75

Other deposits 1/

Less than 250.000 EUR

Up to 1 month 2.07 2.06 2.68 2.68 3.15 3.02 3.01 2.77 2.76 3.09 2.87 3.00 2.88 2.93 2.87 3.14

Over 1 month and up to 3 months 2.37 2.85 2.93 3.31 3.32 4.19 3.73 2.98 4.49 3.97 4.11 3.91 3.91 3.16 3.85 3.66

Over 3 months and up to 1 year 3.40 4.32 4.35 4.07 4.88 4.55 4.19 4.49 4.28 5.32 4.84 5.34 5.40 5.20 5.10 4.66

Over 1 year and up to 2 years * * * 5.43 * * * * * * * * * * *

Over 2 years * * * * * * 5.19 * * * * 5.54 * * *

0.00

Up to 1 month 2.90 3.11 4.27 4.15 4.20 * 3.76 4.04 4.21 3.61 3.84 * * 4.47 3.44 0.00

Over 1 month and up to 3 months * * 4.15 * 4.94 5.08 * 5.32 5.21 4.92 4.31 4.27 * 4.53 * 0.00

Over 3 months and up to 1 year 3.52 3.85 * 5.17 5.42 * 5.14 5.94 5.58 5.69 5.38 5.44 5.88 5.56 5.42 6.07

Savings deposits (outstanding amounts) 1.71 1.53 2.45 2.66 2.76 2.21 2.64 2.62 2.55 2.85 2.94 2.84 3.07 3.07 3.10 2.99

0.00

Households 0.00

Transferable deposits (outstanding amounts) 0.04 0.03 0.02 0.02 0.03 0.06 0.08 0.09 0.10 0.11 0.12 0.12 0.14 0.16 0.11 0.22

Other deposits 1/

Up to 1 month 1.85 1.93 2.55 2.77 2.89 3.00 2.99 3.13 3.11 3.21 3.18 3.06 3.14 3.47 3.53 3.36

Over 1 month and up to 3 months 2.24 2.35 2.75 3.34 3.28 3.35 3.49 3.52 4.09 4.60 4.51 3.31 3.48 3.45 3.43 3.6

Over 3 months and up to 1 year 3.33 3.44 3.60 3.90 4.20 4.24 4.41 4.40 4.37 4.45 4.71 4.45 4.38 4.39 4.39 4.40

Over 1 year and up to 2 years 3.87 4.16 4.72 4.56 4.62 4.82 4.84 5.15 4.96 4.99 5.07 5.10 4.92 4.29 4.91 4.90

Over 2 years 4.04 4.51 5.27 5.33 4.74 5.43 5.66 5.50 6.73 3.95 5.68 5.46 5.78 5.51 5.24 5.26

Savings deposits (outstanding amounts) 1.74 1.65 2.25 2.44 2.57 2.59 2.54 2.58 2.55 2.74 2.66 2.42 2.69 2.60 2.71 2.6

LOANS

Nonfinancial corporations

Investment business loans

Up to 1 year 17.34 * * * * * 23.53 13.89 * * 20.95 17.26 15.06 * 18.74

Over 1 year 13.29 14.50 13.76 15.11 13.72 14.78 17.05 13.68 15.79 13.92 15.06 14.63 15.09 15.65 13.65 14.4

Other business loans 0.00

Up to 1 year 15.18 13.60 * 19.24 18.46 14.08 17.74 17.60 14.46 14.20 14.57 15.44 17.13 * * 10.32

Over 1 year 14.38 15.18 14.64 15.76 15.49 15.94 15.15 15.36 15.73 13.45 16.73 15.02 15.77 15.90 15.91 16.99

Agriculture Loans

Up to 1 year * * * * * * * * * * * * * * *

Over 1 year * * * * * * * * * * * * * * *

Credit lines 15.11 15.72 15.09 13.66 14.48 14.75 15.07 14.14 13.26 15.03 13.28 12.62 12.47 12.52 12.49 12.09

Households

Consumer Loans 11.51 12.36 13.72 14.30 14.12 14.10 13.94 13.53 13.78 13.50 13.96 13.01 13.26 13.10 13.32 13.27

Mortgage loans * * 12.73 11.91 11.16 9.81 10.70 10.50 10.79 13.10 10.70 10.50 10.79 13.10 10.04 10.9

<=5 years * * 12.92 * 11.18 11.22 12.01 11.91 11.16 10.82 12.03 9.42 11.59 10.36 9.94 9.9

>5 years and <=10years * 13.36 12.36 11.24 11.93 10.57 10.30 11.53 11.25 8.13 * * 12.60 * 9.76 9.05

2009

Equal or more than 250.000 EUR

DEPOSITS

Description 2005 2006 20072008

Source: Central Bank of Kosovo* At least one of the conditions for publication (i.e. minimum 3 answers with new business and a standardized variance of maximum 0,20 - for deposits- and 0,45 - for loans) is not fulfilled. 1/ Non-transferable or time deposits



TABLE 4.1

EXPORTS AND IMPORTS BY COUNTRIES

J an Feb Mar Apr May J un

ve, , in thousands of EUR

Export 56,276 110,774 165,112 195,942 6,723 7,739 10,182 10,078 12,460 15,487 62,669.1

Import 1,157,492 1,305,879 1,576,155 1,927,867 99,078 126,157 138,319 150,175 164,460 162,613 840,801.7

Trade balance -1,101,216 -1,195,105 -1,411,043 -1,731,925 -92,355 -118,418 -128,137 -140,096 -152,000 -147,126 -778,132.7

29,853 51,745 65,065 60,488 2,137 2,626 3,099 3,050 5,570 5,740 22,221.7

440,334 536,254 579,574 723,74 28,529 40,847 45,064 57,297 59,669 58,557 289,964.0

of which

5,785 12,645 20,799 21,055 835 824 920 1,466 3,408 3,427 10,880.7

18,093 23,108 35,262 62,376 1,798 2,912 3,091 5,493 5,608 5,382 24,283.7

3,411 5,126 4,836 5,689 191 137 56 29 28 57 497.9

18,450 18,465 29,838 38,742 1,768 2,964 2,353 3,859 4,466 5,433 20,843.5

928 1,123 1,837 791 75 69 205 27 135 85 596.7

24,975 28,074 38,982 49,539 2,282 3,128 3,479 4,999 3,073 3,696 20,656.8

10,828 9,734 15,401 19,355 961 1,498 1,666 1,154 1,639 1,552 8,469.8

220,148 257,754 237,895 348,915 13,655 17,398 20,056 24,513 26,489 24,729 126,841.6

8,158 20,910 19,280 9,884 - - - - - 226 226.0

152,257 191,053 222,534 209,736 8,654 13,899 15,247 17,527 19,015 17,989 92,329.7

743 2,207 2,913 3,714 63 67 214 322 229 393 1,288.3

Montenegro 6,411 17,800 15,063 14,436 370 546 837 906 1,019 1,328 5,006.8

17,882 28,602 69,282 93,637 2,754 3,638 3,505 4,316 4,840 7,843 26,895.1

439,733 454,304 572,903 698,141 32,512 46,520 57,742 56,992 61,712 59,212 314,691.2

of which19,189 23,383 53,056 80,601 2,425 3,448 2,972 3,389 4,312 7,299 23,844.9

296,300 286,464 382,683 486,137 22,700 32,881 43,031 42,516 45,547 50,204 236,878.5

of which:1,017 1,211 2,005 2,041 177 26 7 117 58 222 606.8

20,719 23,539 26,842 30,874 1,090 2,108 2,823 3,252 2,611 3,253 15,136.3

477 232 144 239 0 72 39 9 7 12 139.2

20,093 15,861 25,007 37,150 1,120 1,241 1,808 1,910 1,948 2,264 10,292.3

3,222 3,952 16,190 7,143 568 590 384 235 316 571 2,664.3

123,763 122,652 155,031 196,311 10,255 15,328 21,195 18,653 21,251 22,325 109,007.4

5,445 3,914 8,400 10,824 0 52 27 17 114 - 210.2

44,027 37,614 63,737 81,227 3,910 4,614 5,472 7,085 7,289 7,198 35,566.7

6,558 12,654 9,672 25,475 1,514 2,513 1,729 2,906 3,658 6,218 18,537.3

49,555 52,461 57,678 73,630 2,506 4,902 6,513 6,124 6,733 7,827 34,604.0

124 1,128 2,331 1,888 0 210 130 93 79 249 760.9

7,814 6,986 9,71120,079 1,110 2,004 2,148 1,387 1,532 2,374 10,554.6

… … 154 168 0 0 0 0 0 0 0.0

7,478 6,378 9,502 11,766 1,098 852 804 1,462 917 1,899 7,032.2

1,463 5,219 5,080 10,413 263 164 509 467 384 230 2,016.4

98,511 104,898 117,952 150,751 5,996 11,146 11,277 10,387 12,051 2,774 53,630.7

of which:87 … 112 105 0 0 0 0 0 0 0.0

16,233 20,011 25,537 37,643 520 2,035 2,596 1,791 1,865 2,192 11,000.0

1,165 4,515 4,290 6,214 55 118 292 366 326 213 1,369.6

54,998 56,001 62,420 66,708 2,846 4,027 5,475 5,602 6,720 5,555 30,225.9

, , , , .

, , , , , , , , , , , .

968 13,506 10,005 2,582 65 24 21 457 140 304 1,011.0

37,791 58,498 42,008 54,466 3,573 2,125 2,754 3,391 3,348 4,160 19,350.6

- - 1,142 - 0 0 0 0 0 10 10.0

Romania - - 30,261 6,788 243 369 681 699 766 1,138 3,895.3

Export 8,541 30,427 30,764 41,817 1,804 1,475 3,583 2,712 2,051 1,904 13,528.4

Import 277,425 315,321 423,678 505,864 38,038 38,789 35,513 35,885 43,079 37,395 228,698.0

of which

Export 1,037 1,597 2,660 3,099 452 0 0 0 0 633 1,085.1

Import 85,376 97,075 101,827 127,450 6,909 8,718 11,137 13,572 15,470 12,548 68,354.6

… … … … 0 0 0 0 0 0

54,864 74,655 104,951 120,116 8,652 8,181 7,943 9,402 13,116 10,203 57,497.5

… … 50 - 0 140 1,027 1,203 33 - 2,401.9

11,969 11,978 16,267 11,709 411 783 381 792 852 417 3,635.3

… … … … 0 0 0 0 0 -

16,840 18,578 30,282 43,506 2,050 2,299 3,558 2,708 2,919 2,020 15,553.6

681 7,047 12,364 6,789 54 0 0 0 0 466 520.4

18,739 2,456 23,894 32,278 915 1,396 1,319 1,437 1,959 2,304 9,330.0

171 … … … 0 2,179 1,647 743 0 49 4,618.3

Import 17,693 11,555 14,698 23,439 2,219 1,578 2,112 1,691 1,659 2,377 11,635.5

20092009

BrazilExport

Export

Export

Import

Slovenia

Import

Ukraine

Import

Export

Import

United

States

Export

ChinaExport

Import

SwitzerlandImport

Bulgaria

Import

Export

Export

Turkey

OTHER

COUNTRIES

Import

Export

Hungary

Export

Export

Import

EU

Export

Import

Import

Bosnia and

Herzegovina

Export

Import

CroatiaExport

Import

MacedoniaExport

Import

Import

Import

Export

Import

Export

Import

Export

Export

Import

Export

Greece

United

Kingdom

Export

Import

EU 10

Italy

Netherlands

France

Export

Import

Austria

GermanyExport

Import

2005 2006 20082007

Export

Import

Import

Description

CEFTA

EU 2ExportImport

SerbiaExport

AlbaniaExport

Import

EU 15

0.0

0.0



Source: Statistical Office of Kosova

TABLE 4.2

IMPORTS BY COMMODITY GROUPS


Total 1,157 1,306 1,576 105 234 368 516 684 857 1,031 1,210 1,378 1,558 1,725 1,928 1,928 99 225 364 514 678 841 841

1 Live animals and animal products 54.0 50.5 61.2 3.2 8.4 13.8 20.3 26.9 33.7 41.5 50.3 59.4 68.3 75.9 85.4 85.4 4.6 9.9 17.3 23.0 28.7 34.8 34.

2 Vegetable products 57.2 73.0 83.4 8.2 17.5 26.2 34.9 45.7 56.0 63.8 71.8 78.5 86.9 94.1 103.6 103.6 7.3 10.2 19.1 28.3 37.3 45.6 45.

3 Animal or vegetable fats and oils and their cleavage products 11.0 15.3 17.3 1.4 3.4 4.7 6.0 7.8 9.1 11.3 13.7 16.3 18.5 20.3 22.7 22.7 1.0 4.8 6.2 7.6 8.8 10.3 10.

4 P repared foodstuffs, beverages, spirits ; tobacco 163.3 180.6 222.7 10.5 27.4 44.9 63.2 86.2 108.3 131.7 158.7 183.6 203.2 222.5 261.9 261.9 9.8 11.1 27.5 46.1 66.9 86.5 86.

5 Mineral products 207.3 241.7 317.6 31.2 61.2 90.0 118.5 152.5 183.7 216.4 257.6 291.7 330.4 359.6 387.2 387.2 24.1 28.1 47.8 70.0 94.4 119.3 119.

6 Products of the chemical or allied industries 91.1 107.7 118.9 8.2 17.7 27.9 39.3 50.9 63.4 75.4 87.4 99.0 113.6 124.2 138.3 138.3 5.1 5.2 17.4 30.1 41.9 54.5 54.

7 Plastics; rubber and articles thereof 51.0 60.7 72.5 2.8 7.9 13.5 20.2 28.5 36.6 45.4 53.2 61.2 70.0 78.3 86.2 86.2 3.8 15.6 22.2 29.9 37.8 45.8 45.

8 Skins, leather, furskins and articles thereof; 1.5 2.2 2.5 0.1 0.3 0.4 0.6 0.8 1.1 1.3 1.6 1.9 2.2 2.6 2.8 2.8 0.2 16.7 17.0 17.2 17.5 17.8 17.

9 Wood and articles of wood, cork and articles of cork 30.5 30.3 35.3 1.7 3.2 5.5 8.7 13.3 17.3 22.1 27.0 30.9 34.9 38.5 41.7 41.7 1.4 13.3 15.7 19.2 23.7 28.5 28.

10 Pulp of wood; paper and articles thereof 23.5 27.6 31.7 2.0 4.2 6.7 9.6 13.2 16.8 20.8 25.1 28.3 31.5 34.7 38.4 38.4 2.2 3.2 6.1 9.3 12.6 15.9 15.

11 Textiles and textile articles 35.9 45.1 52.4 3.2 6.2 10.2 15.2 20.3 25.8 31.8 36.7 43.0 50.7 58.1 63.8 63.8 3.3 3.3 8.3 14.2 20.6 26.4 26.

12 Footwear, umbrellas, artificial flowers etc 11.3 14.3 16.3 0.8 2.0 3.6 5.1 6.8 8.5 9.8 11.5 13.2 15.6 17.2 18.2 18.2 1.0 7.8 9.3 10.9 12.8 13.9 13.

13 Articles of stone, plaster, cement, glass etc 51.5 57.0 62.9 3.1 6.9 10.6 15.4 21.7 29.2 36.1 42.9 50.0 55.9 61.6 66.9 66.9 2.8 5.6 9.9 15.2 23.3 31.0 31.

14 Precious metal and articles thereof; imitation jewelry etc 0.3 0.4 0.6 … 0.1 0.1 0.3 0.3 0.4 0.5 0.6 0.7 0.9 0.9 1.0 1.0 0.1 0.2 0.3 0.3 0.5 0.6 0.

15 Base metals and articles of base metal 90.3 122.6 144.3 9.1 19.1 32.5 45.3 62.8 79.4 94.9 108.4 123.2 140.1 160.6 179.1 179.1 7.0 8.3 18.2 31.4 46.1 60.2 60.

16 M achinery a nd mechanical appliances, electrical equip.; 129.2 153.3 196.6 11.3 29.4 44.9 68.3 86.0 108.3 128.7 147.5 165.9 186.3 207.7 235.0 235.0 13.4 27.4 47.0 67.8 91.7 112.2 112.

17 Vehicles, aircraft and associated transport equipment 104.2 79.3 82.1 6.2 13.2 23.3 32.1 42.0 54.0 66.6 77.8 88.1 99.9 112.3 129.5 129.5 8.9 32.5 47.4 60.4 74.6 91.1 91.

18 Optical, photog., medical instr. and apparatus, musical instr. 15.3 14.3 19.1 0.8 2.5 3.7 4.7 6.2 8.1 9.7 10.8 11.8 13.7 16.2 21.3 21.3 0.9 11.8 13.4 15.2 16.9 19.1 19.

19 Arms and ammunition and accessories thereof 0.1 0.5 0.4 … … … … … … … … 0.1 0.1 0.3 0.3 0.3 5.7 5.7 5.7 5.7 5.7 5.

20 Miscellaneous manufactured articles 28.9 29.5 37.7 1.3 3.2 5.5 8.2 12.1 17.2 22.9 27.3 30.9 35.5 39.7 44.5 44.5 2.3 2.5 6.0 9.7 14.3 19.5 19.

21 Work of art … 0.1 0.1 … … … … … 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.0 1.9 1.9 1.9 1.9 1.9 1.

200920092005Description 20072006 2008

2008


TABLE 4.3

EXPORTS BY COMMODITY GROUPS


Total 56.3 110.8 165.1 11.7 26.0 43.4 60.5 86.5 103.5 121.8 136.4 157.4 175.1 185.3 195.9 195.9 6.7 14.5 24.6 34.7 47.2 62.7 62.

1 Live animals and animal products 0.5 0.3 0.6 0.1 0.1 0.2 0.4 0.6 0.7 0.8 0.9 0.9 1.0 1.0 1.1 1.1 0.1 0.2 0.3 0.4 0.4 0.5 0.

2 Vegetable products 2.9 5.1 9.1 0.4 0.9 1.3 1.7 2.0 2.5 3.0 4.3 5.7 7.0 8.0 8.9 8.9 0.5 0.6 1.0 1.6 2.3 3.3 3.

3 Animal or vegetable fats and oils and their cleavage products … 0.1 … … … … … … … … … … … … … … 0.5 0.5 0.5 0.5 0.5 0.

4 Prepared foodstuffs, beverages, spirits ; tobacco 4.6 6.2 8.4 0.6 1.3 2.2 2.9 3.8 4.7 5.7 6.5 7.6 8.6 9.7 10.5 10.5 0.7 0.7 1.2 2.0 2.7 3.5 3.

5 Mineral products 3.2 18.8 27.3 0.6 1.8 2.8 3.8 6.8 7.9 9.5 10.0 13.4 15.5 17.4 17.9 17.9 0.4 0.4 1.7 3.3 6.1 9.2 9.

6 Products of the chemical or allied industries 1.2 1.2 0.9 … 0.1 0.2 0.4 0.6 0.8 1.1 1.2 1.3 1.5 1.7 1.8 1.8 … 0.1 0.3 0.6 0.6 0.

7 Plastics; rubber and articles thereof 1.0 3.2 6.5 0.6 0.9 1.8 2.7 3.3 4.0 4.7 5.1 5.6 5.9 6.3 6.4 6.4 0.4 4.8 5.7 6.2 7.0 7.7 7.

8 Skins, leather, furskins and articles thereof; 6.1 7.2 6.5 0.7 1.4 2.0 2.5 3.1 3.6 3.8 3.9 4.1 4.3 4.6 4.8 4.8 0.4 0.8 1.0 1.2 1.5 1.7 1.

9 Wood and articles of wood, cork and articles of cork 0.4 0.8 1.7 0.2 0.3 0.4 0.6 0.8 0.9 1.0 1.2 1.4 1.5 1.6 1.7 1.7 0.2 0.2 0.3 0.4 0.5 0.

10 Pulp of wood; paper and articles thereof 0.4 0.7 1.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.1 1.1 0.1 0.2 0.3 0.4 0.4 0.

11 Textiles and textile articles 0.6 0.7 1.2 0.1 0.2 0.3 0.6 0.7 1.0 1.2 1.4 1.6 1.9 2.1 2.5 2.5 0.4 0.4 0.6 0.9 1.4 1.7 1.

12 Footwear, umbrellas, artificial flowers etc 0.1 0.1 0.1 … 0.0 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.5 0.5 0.6 0.6 0.6 0.

13 Articles of stone, plaster, cement, glass etc 0.4 0.7 1.2 0.1 0.2 0.3 0.5 0.6 0.7 0.8 1.0 1.2 1.3 1.4 1.4 1.4 0.3 0.4 0.5 0.6 0.7 0.

14 Precious metal and articles thereof; imitation jewelry etc 0.2 0.2 0.2 … 0.0 0.0 0.1 0.1 0.1 … 0.1 0.1 0.1 0.1 0.1 0.1

15 Base metals and articles of base metal 24.8 53.1 74.1 6.4 14.9 26.2 37.7 55.9 67.6 80.8 90.4 102.9 113.9 117.4 124.1 124.1 3.2 3.2 8.3 13.1 18.5 26.5 26.

16 Machinery and mechanical appliances, electrical equip.; 6.5 7.7 21.3 1.6 2.8 4.1 4.4 5.6 6.0 5.7 6.1 6.8 7.4 8.1 8.4 8.4 0.3 1.0 1.5 1.9 2.3 2.7 2.

17 Vehicles, aircraft and associated transport equipment 2.3 1.4 1.5 0.1 0.3 0.4 0.6 0.8 0.9 1.1 1.5 1.6 1.8 2.0 2.1 2.1 0.1 0.2 0.3 0.4 0.5 0.7 0.

18 Optical, photog., medical instr. and apparatus, musical instr. 0.4 0.3 0.4 … 0.0 0.0 0.1 0.2 0.2 0.3 0.4 0.4 0.4 0.5 0.6 0.6 0.1 0.1 0.2 0.2 0.2 0.

19 Arms and ammunition and accessories thereof … 2.5 … … … … … … … … … … … … … … 0.3 0.3 0.3 0.3 0.3 0.

20 Miscellaneous manufactured articles 0.4 0.6 2.8 0.2 0.3 0.6 0.9 1.2 1.4 1.5 1.7 1.9 2.0 2.2 2.3 2.3 0.1 0.3 0.5 0.7 0.9 1.0 1.

21 Other 0.3 0.0 0.1 … … … … … … … … … … … … … 0.1 0.1 0.1 0.1 0.1 0.

200920072006Description2008

20082005


Semi-Annual Macroeconomic Bulletin Jan-June 2009

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Transcript of Semi-Annual Macroeconomic Bulletin Jan-June 2009