Kosovo exported EUR 1.038 billion of services in 2016

According to the “Report on Trade in Services – Balance of Trade 2016”, prepared by the Ministry of Trade and Industry and data from the Kosovo Agency of Statistics, it results that Kosovo’s trade in services for 2016 totalled EUR 1.498 billion.

Out of this amount, service exports amounted to EUR 1.038 billion, while imports amounted to EUR 460 million. This indicates that our country has recorded a positive trade balance of EUR 579 million.

In 2015, total exports to international trade in services amounted to EUR 887 million, while imports amounted to EUR 467 million.

2016 marked a rather positive trend of increased service exports with EUR 151 million more revenues (or 17%) than in 2015.

The main sectors contributing to this positive balance for the period (January – December 2016) were: Travel (Tourism) with export in an amount of EUR 809 million, followed by Business and Professional Services with EUR 63 million; Communication Services (ICT) with EUR 48.5 million; Construction Services with EUR 13 million; and Government Services with EUR 35.5 million.

Travel and Tourism Services are mainly attributed to Kosovo Diaspora and foreign nationals working in Kosovo. The negative balance in trade with services was marked in Transport Sector with – EUR 90 million for 2016.

Table 1. Trade balance in services in period 2015 – 2016

The table indicates that there was an increase in total trade in services exports from year to year, thus positively impacting the balance of services, especially in 2016 with a growth of EUR 159 million.

Table 2 Main Sectors of Trade in Services in the Period 2015 – 2016

From Table 2, it is evident that in 2016 there was an export growth in the field of Travel and Tourism in a value of EUR 89 million; there was also an export growth for the Business and Professional Services Sectors with EUR 8 million and the ICT Sector with EUR 4.5 million. With the entry into force of the SAA it is envisaged that these two sectors will increase their Exports to EU countries, but an indicator that is adversely affecting access to the EU market is the lack of visa liberalization for Kosovo. As a result, Kosovar service providers cannot provide their services timely, facing higher transportation costs than competitors from the region.

Trade in services accounts for a large part of GDP, mainly owing to the presence of donors in the country. The overall assessment of the contribution of services to GDP was 73% in 2015, according to a World Bank assessment, which represents an increase of 9% (percentage points) since 2004 when the contribution to GDP was 64%.