Page 101 - SE Outlook Regions 2023

Another big Croatian company – the largest chocolate producer Kras
Group – sold its distribution units in Bosnia & Herzegovina,
Montenegro, Serbia and Slovenia in November.

3.5 Real economy - Kosovo

3.5.1 Retail

GDP from services in Kosovo increased to €274.2mn in the second
quarter of 2022 from €203.8mn in the previous quarter, according to
the statistics office.

According to Trading Economics, GDP from services in Kosovo
averaged €188.29mn from 2011 until 2022, reaching an all time high of
€321.62mn in the third quarter of 2021 and a record low of €97.18mn in
the first quarter of 2011

Sales by vendors of food, drinks and tobacco in Kosovo fell by 2.5%
y/y in September 2022, after dropping by 2.3% y/y a month before,
according to statistics agency data.

Retail sales in non-specialised stores went up by an annual 19.3% y/y,
while sales of fuels in specialised stores jumped by 37.5% y/y in
September.

Retail sales of other household appliances in specialised stores
increased by 9.7% y/y in the period under review.

Prishtina Mall, billed as the biggest shopping mall in the region, is due
to open in 2023. Among the stores will be the first Hamley’s outlet in
the Western Balkans.

Supermarket chains are expanding in Kosovo. In 2022, the European
Bank for Reconstruction and Development (EBRD) announced a
€175mn senior loan to German retail chain Schwarz Group to support
the expansion of Lidl format stores in Kosovo and other the Western
Balkan countries as well as Kaufland operations in Romania and
Moldova.

3.5.2 Banks

Kosovan banks' loan portfolio jumped 18.4% y/y at the end of
September to over €4.2bn of which loans to non-financial corporations
accounted the bulk of over €2.6bn, up by 18.4% y/y.

Kosovan banks' combined deposit portfolio totaled €5.3bn at the end of
September, up 12.7% from the same month in 2021, central bank data
indicated.

101 SE Outlook 2023 www.intellinews.com