Annual Report 2010 03 August 2011 - Banka Qendrore e ...

CBK
Annual Report 2010
total exports. Unlike last year,
when machinery and equipment
export recorded an annual decline
of 18.0 percent, exports of this
category recorded an annual
growth of 48.8 percent in 2010.
The classification of the imported
32.2 31.7
30%
31.4
31.1
products according to their final
20%
use or Broad Economic Categories
10% 16.6 17.1 15.1
10.8
(BEC) was similar to the previous 0%
2007 2008 2009 2010
year. According to this
Capital goods Intermediary goods Consumption goods Unclassified goods
classification, the intermediate
Source: CBK (2011)
goods represent the largest
category with a share of 47.9 percent of total imports, followed by consumption goods with a
share of 31.1 percent of total imports (Figure 34). The relatively high share of intermediate
goods in the overall imports indicates that the production activity in the Kosovo’s economy
considerably depends on the import of raw materials from abroad. Also, the increase of the
share of consumption goods to total imports continuously indicates a low level of domestic
production. The share of capital goods to total imports decreased to 10.8 percent in 2010
compared to 15.1 percent in 2009, in spite of the faster growth of investments in the
country during 2010.
The structure of Kosovo’s trading
partners in 2010 was similar to the
previous years. In 2010, Kosovo
realized around 74.7 percent of
total trade with the European
Union (EU) and with CEFTA
member countries. The recovery of
the demand in EU countries,
especially in the second half of
2010, made Kosovo exports to
these countries record a higher
growth compared to export to the
region countries. The
noncompliance with CEFTA
Figure 34. Imports by BEC
100%
90%
80%
70%
60%
50%
40%
9.2 10.1 12.9 10.2
41.9 41.1
40.6 47.9
Figure 35. Structure of exports by trading partners, in
percentage
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
0.4 0.3
agreement, for political reasons, by Serbia and Bosnia and Herzegovina continued to
obstruct Kosovo’s exports to these countries also during 2010. In addition to the problems
related to the implementation of the CEFTA agreement, as of end 2010, also Kosovo’s
status as a favored country for trade with EU has expired, thus presenting another obstacle
for Kosovo’s firms to penetrate the external markets.
Kosovo’s exports towards EU reached at euro 131.5 million in 2010, which represents an
annual growth of 84.4 percent. Consequently, the share of Kosovo’s exports to EU increased
to 44.7 percent, compared to 43.1 percent in the previous year (Figure 35). Among the EU
counties, Italy represents the main destination for Kosovo’s exports, with a share of 27.3
percent of total exports. The largest part of exports to Italy consists of nickel minerals.
Exports to Germany, Austria and Slovenia have also increased their share to total exports.
0.4
Source: CBK 2011
0.3
0.2
0.5 0.4 0.4
2007 2008 2009 2010
EU CEFTA Other
| 51