Kosovo Reserves in Months of Imports

Kosovo’s reserves in months of imports have fallen sharply over the 22‑year series, slipping from an early‑2004 level of 3.07 to a trough of 1.46 in 2025, the lowest figure recorded since coverage began. The all‑time peak of 4.56 months was reached in 2007, shortly after the country’s declaration of independence, when external assistance and remittance inflows were relatively strong. By contrast, the 2025 value places Kosovo at rank 128 globally and ties it with Canada at 1.46 months, while El Salvador records a marginally higher 1.48 months and Bahrain 1.59 months, underscoring the limited buffer Kosovo holds against external shocks. The decline reflects persistent current‑account deficits, modest export growth and reliance on external financing, which have constrained the accumulation of foreign‑exchange reserves. Unless fiscal consolidation is paired with policies that boost export competitiveness and diversify financing sources, the downward trajectory is likely to continue, keeping the reserve coverage near historically low levels.