• Gross Domestic Product3.0 billion DEM
• National Income4.5 billion DEM
  • Difference due to remittances and humanitarian assistance
  • Remittances could be 500-1,000 DEM per
    month from perhaps 200,000 remitters
  • Remittances were between 1.2 and 2.4 billion
• Per Capita GDP1,580 DEM
• Per capita national income 2,374 DEM

See IMF “Macroeconomic Issues and Fiscal Sustainability”, November 2000 pp. 25-31

• Kosovo’s Population1.9 million¹
• Imports are 85% of GDP
• Exports are virtually zero
• Public investment 0.76 billion DEM, mainly donor
  financed, is 25% of GDP
• Private Investment0.4 billion DEM, is 13% of GDP
• Total investment1.16 billion DEM is 39% of GDP
• Consumption4.4 billion DEM is 146% of GDP

¹ Kosovo’s population estimates range from 1.9 to 2.3 million for 2000. The last two population census conducted in 1981 and 1991 estimated Kosovo population at 1.6 and 1.9 million respectively, but the 1991 census probably undercounted Albanians.

• Four Commercial Banks with length of credit from 3 months to 2 years and business loans of up to 100,000 DEM for 12 months from between 15 and 22% compound interest per year
• An interim credit facility unit for small and medium enterprises and an agricultural business unit aiming at agrobusiness, both dispensing business loans of up to 300,000 DEM on average for 3 to 5 years from 8 to 15% interest compound per year
• Equity financing of up to 400,000 DEM
• Eleven micro finance institutions (MFIs) charging an average of 32% per year on loans of 10-100,000 DEM for 6 months to 2 years, with 13 million DEM credit outstanding on April 30, 2001

Source: CFA, BPK & DTI/PSD

Revenue Highlights:

• Revenues to finance general government spending is 68% local sources/32% donor financing compared to 50/50 for 2000.
• Most of tax revenues (34%) are from VAT and ExciseSales and Customs duties comprise other major sources

Source: CFA

Expenditure Highlights:

• General government spending increased from the year 2000 to 500 million DEM.
• 68% of total expenditures are for Education, Health, Social Welfare and Justice
• Salaries and the number of civil servants about equal to 2000, with a slight increase smaller Departments.

Source: CFA

Estimated Investment Needs by Sector (DM Million):

Public Utilities Housing Transport Education Agriculture Health Other Total

752.6 619.0 243.7 159.6 149.4 143.7 709.1 2,77.1

Source: CFA

Public Investment Programme Highlights:

• Majority of public investment spending (77%) is for Public Utilities, Housing, Transport, Education, Agriculture and Health.
• ! For 2002 and beyond, Kosovo Budget will require additional funds for operating and maintenance costs of capital infrastructure.

Source: CFA