Kosovo, the most recent country undergoing a transition process, has overcome various problems related to economic recovery and institution-building, establishing the fundamental framework for a market economy. The adoption of the euro in the economy increased market trust and ensured macroeconomic stability.Challenges for policymakers include high unemployment, poverty, an unfavorable trade balance situation, budgetary sustainability, and the need for fundamental institutional reform.Kosovo's economy, being tiny and open, remains highly responsive to global economic trends. This sensitivity was seen in both the adverse impacts of the 2008/2009 global crisis and the favorable impacts of the initial stages of the global economy's recovery in 2010.The global economy's performance improved in the first half of the year, leading to positive effects on Kosovo's economy. Exports doubled, foreign direct investments increased by 13% annually, and emigrants' remittances rose by 1.4% annually. All these factors have improved the performance of Kosovo's real economy sector, allowing for the future growth of the financial sector's operations.
Mejreme Krasniqi Sadiku (Tue,) studied this question.