Kosovo

Kosovo’s journey toward a modern, market-driven economy faces daunting challenges. While the United States and most EU members have formally recognized Kosovo’s independence from Serbia in 2008, many other countries and international institutions, including the United Nations, have not. Still, with over 50% of its population under 25, its proximity to European markets, low labor costs and significant natural resources, Europe’s youngest country has managed to attract the interest of several international firms.

Still, foreign direct investment (FDI) remains limited, and the scarcely diversified economy relies heavily on diaspora remittances and international support. Additional weaknesses include political instability and interference in the economy and judiciary, corruption and tenuous rule of law, an unreliable energy supply, inadequate infrastructure, and a sizable informal economy.