PRISTINA - Kosovo, one of the poorest parts of Europe, has approved a 2015 budget targeting steady economic growth of four percent.
The budget, set at 1.576 billion euros ($1.91 billion), was adopted late Monday by a majority in the 120-seat assembly of the breakaway territory where a third of its 1.7 million inhabitants are unemployed and around 40 percent live in poverty.
Prime Minister Isa Mustafa told parliament his government expected a growth rate of more than four percent in 2015, unchanged from estimates for 2014, and inflation of one percent, up from 0.4 percent this year.
Since the end of the 1998-1999 war with Serbia, Kosovo's economy has remained highly dependent on aid from the international community and the diaspora.
Yearly remittances from the diaspora -- located mainly in Germany and Switzerland -- are estimated at more than 500 million euros ($600 million).
Mustafa said improving the current structure of the economy needed to focus on boosting investment and therefore increasing domestic production and exports to reduce its high trade deficit.
Kosovo unilaterally proclaimed independence from Serbia in 2008 and has been recognised by more than 100 countries, including the United States and a majority of EU member states.
AFP
