The economy of Kosovo is a transitional economy. It suffered from the combined results of political upheaval, the Serbian dismissal of Kosovo employees and the following Yugoslav Wars. Despite declining foreign assistance, the GDP has mostly grown since its declaration of independence. This was despite the financial crisis of 2007–2008 and the subsequent European debt crisis. Additionally, the inflation rate has been low. Most economic development has taken place in the trade, retail and construction sectors. Kosovo is highly dependent on remittances from the diaspora, FDI and other capital inflows.&lt;ref name="IMF Country Report No 12/100"&gt; " IMF Country Report No 12/100 " "Unemployment, around 40% of the population, is a significant problem that encourages outward migration and black market activity."&lt;/ref&gt; Kosovo is one of the poorest countries in Europe. In 2018, the International Monetary Fund reported that approximately one-sixth of the population lived below the poverty line and one-third of the working age population was unemployed, the highest rate in Europe.