Context
Kosovo’s economy has made considerable progress in recent years. Following the lifting of COVID restrictions, the economy has shown steady recovery. By 2023, growth had reached between three and four per cent, primarily driven by exports, public investment and domestic demand.
At the same time, the country faces high unemployment and low per capita income, and has the youngest population in Europe. Equal access to economic, social and cultural participation has not yet been secured for all population groups in Kosovo.
The economic situation in Prizren, Kosovo's second-largest city, is similar. Although the tourism industry is growing, other economic sectors are slow in comparison. The companies operating are predominantly micro enterprises, which have so far offered limited employment opportunities. Furthermore, Prizren faces strong competition from the capital Pristina, and this is negatively impacting demographic and economic development.
