UNMIK and Kosovar Institutions have successfully built a stable macroeconomic environment. Kosovo has adopted the Euro as its currency and as a consequence does not run currency management or exchange rate risks. Moreover, the Kosovo Government runs a stable and forward-looking fiscal policy. The tax revenue base has been widened. The improvement in revenue collection, overall fiscal stability and the growth of the GDP can be seen in the graph and table below.
General Macroeconomic Indicators
Economic growth in 2006
According to UNMIK, the economic growth in 2006 has exceeded all expectations. It was two times higher than the expectations of the International Monetary Fund. The growth in 2006 is 5 % and comes exclusively from the private sector. The real economic growth in the private sector alone is nearly 10%.
A very large number of private businesses have opened up in Kosovo since 1999. That is in itself proof of a supportive business environment. Approximately 43,000 private businesses have been registered. The majority of them are active in trade, but as shown in the table below, nearly half of them are distributed across many other, quite diverse business sectors.
Registered private businesses classified by economic activity