IMF raises Montenegro’s 2022 GDP growth projection to 7.2%

Published on 14. October 2022., News

The International Monetary Fund (IMF) said it expects Montenegro’s economy to grow by 7.2% this year, increasing its April projection of 3.8%growth.

Montenegro’s gross domestic product (GDP) is expected to grow by 2.5% next year, the IMF said in the October edition of its World Economic Outlook report published on Tuesday.

The latest IMF estimation is more optimistic than the latest World Bank forecast

Last year, Montenegro’s economic output expanded by an estimated 13%, according to the report.

Montenegro’s average consumer price inflation is seen surging to 12.8% in 2022 from 2.4% last year, before slowing down to 9.2% in 2023, the IMF said.

The country’s current account deficit, standing at 9.2% as a percentage of GDP in 2021, is forecast to expand to 13.8% in 2022 and increase further to 14% in 2023.

The IMF projects that the economy of the Emerging and Developing Europe area will stagnate in 2022, before slightly expanding by 0.6% in 2023. The region includes Bosnia, Romania, Turkey, Bulgaria, Serbia, Croatia, Albania, Kosovo, Moldova, Montenegro and North Macedonia.

The global economy is expected to expand by 3.2% in 2022 and by 2.7% in 2023 as it continues to face challenges due to the Russian invasion of Ukraine, persistent and broadening inflation pressures and the slowdown in China, the IMF noted.