During the month of June, citizens of Kosovo significantly increased their spending on international travel, totaling 58.9 million euros, marking an 18 percent surge. Notably, nearly half of these expenses were allocated to trips taken within Albania.

According to a report from the Central Bank of Kosovo, “Spending on foreign travel by Kosovo citizens reached a total of 58.9 million euros in June, showing an 18 percent increase. A substantial portion, around 46 percent, was dedicated to expenses incurred during trips within Albania.”

Concerning services, it was disclosed that 90 percent of travel-related expenses were driven by the Kosovo diaspora.

“Travel services emerge as the dominant category within services. In Kosovo alone, travel-related services for June amounted to 141.3 million euros, slightly surpassing the 132.3 million euros recorded during the same period the previous year – a 7 percent increase. 90 percent of these travel expenses in Kosovo, equivalent to 126.6 million euros, were attributed to the Kosovo diaspora. Compared to the same period in the previous year, the diaspora has expended roughly 15 percent more this year.”

The trade balance, as of June, saw a deficit of 2.1 billion euros, marking a significant increase compared to the previous year. In contrast, the services sector exhibited a positive balance, registering a 36 percent growth.

“Regarding the balance of goods within the Balance of Payments, there was a notable trade deficit of 2.1 billion euros recorded until June 2023, marking the highest trade deficit observed during the same period in the previous year. However, the services sector displayed a positive balance until June 2023, amounting to 553.2 million euros, showcasing a 36 percent growth compared to the corresponding period in 2022, when it stood at 407.8 million euros.”

The Central Bank, the foremost financial institution in Kosovo, reports a 14 percent increase in Foreign Direct Investments (FDI).

“The balance of direct investments within Kosovo until June 2023 yielded a result of 271.9 million euros, indicating a total value of 374.2 million euros. This figure surpasses investments made by Kosovo citizens residing abroad, which amounted to 101.9 million euros. Consequently, foreign direct investments reached an impressive total of 374.2 million euros, marking a 14 percent increase compared to the same period in the previous year, when it amounted to 327.3 million euros until June 2022.”

In contrast, other forms of investments showed negative trends.

“Other investments, encompassing deposits, loans, and trade credits, exhibited a negative value of 135.9 million euros until June 2023, primarily attributable to the rising external debt in Kosovo, which amounted to 285.4 million euros until June 2022. On the other hand, the balance of investments in securities, excluding those within reserve assets, saw an 86.7 million euro increase until June 2023.”

In conclusion, the report notes that reserve assets have grown by 78.6 million euros, while growth stood at 171.8 million euros in the same period of the previous year.