Political stability crucial to the Montenegrin economy

Political stability is of great importance for the Montenegrin economy, is rated at the spring economic forecast of the European Union (EU) for 2023.

With the effective use of IPA funds and the implementation of the economic and investment plan for the Western Balkans, it is stated and that it will be crucial to the incentive of inclusive growth, increasing competitiveness and employment.

There are also fiscal sustainability, work on harmonization with the acquis communautaire, and should all be supported by Montenegro with structural reforms in terms of fighting corruption, improvement , transparency, strengthening institutions and social dialogue.

- The Montenegrin economy continued to grow rapidly in the first half of 2022, which is the result of private consumption and good tourist season. However, growth began to slow down in the second half of the year, which is projected in 2023 - because high inflation and growing costs burden the consumption of population and investment, despite the noticeable increase in public sector salaries, pensions and social benefits - He points out in the EU document.

According to their forecasts, the budget deficit will decline gradually.

- After strong growth during the first half of 2022, the economy slowed in the second half. Inflation accelerated and reached the peak of 17.5 percent in November 2022. It is necessary to restrain the possibility of strengthening inflation - is stated in the EU document, but also emphasizes that the banking sector has remained healthy.

In 2022, according to EU estimates, the economic activity was driven by the increase in private consumption and exports - which included a sudden increase in the minimum earnings and abolition of contributions for compulsory health insurance.

- Economic activity is supported by the inflow of Russian and Ukrainian citizens and recovery continues in tourism. In contrast, gross investment and landline capital has been reduced, and state spending was only slightly expanded. Increasing domestic demand has resulted in the spread of imports - added to the document.

POBJEDA