Kosovo has the lowest public debt burden among the Western Balkan economies, with government debt standing at around 17.5% of gross domestic product (GDP) at the end of 2025, according to the International Monetary Fund (IMF).
The debt ratio places Kosovo well below other economies in the region, where public debt ranges from nearly 65% of GDP in Slovenia and 60% in Montenegro to more than 50% in North Macedonia and Croatia.
Among Western Balkan economies, North Macedonia’s public debt stands at 53% of GDP, Albania’s at 48.7%, and Serbia’s at 41.5%, while the Federation of Bosnia and Herzegovina reports a debt ratio of 20.5%. The Republic of Srpska’s debt amounts to about 38% of GDP.
The IMF said Kosovo’s public finances remain among the strongest in emerging Europe, supported by prudent fiscal policies and relatively low borrowing levels. Public debt fell below 17% of GDP in 2024 and stood at about 17.5% at the end of 2025. The Fund projects debt to rise gradually over the next decade but remain well below regional averages.
Economists note that Kosovo’s low debt level provides fiscal space for public investment and crisis response measures, although the country continues to face challenges related to infrastructure needs, employment and external trade deficits.