Unlike many European countries, Montenegro successfully overcame the energy crisis thanks to the diverse domestic production of electricity from different sources – hydroelectric power plants, coal and wind power plants, according to the American rating agency S&P.
S&P, which recently affirmed Montenegro’s ‘B/B’ credit rating and maintained a stable outlook, announced that it expects the energy sector to play an important role in driving economic growth in the medium term, thanks to the country’s significant potential for solar energy production and of the wind.
– This energy portfolio – hydropower (40%), coal (40%) and wind power (20%) – has helped to insulate the country from pan-European natural gas supply problems that have proven to be an obstacle for other countries – the report states.
It was also assessed that tourism, which is the backbone of the Montenegrin economy, was maintained despite the conflict between Russia and Ukraine.
The Agency expects that the Montenegrin economy will grow at a rate of 3.2% this year, in contrast to last year’s 6.1%.
– Growth will remain predominantly supported by private consumption and investments, but also by the key tourism sector. While the economy is still largely dependent on tourism and foreign direct investment (FDI), initiatives are underway to increase FDI in areas such as solar and wind power generation. The Montenegrin economy continues to attract high levels of FDI. Authorities are making efforts to increase them in other sectors, especially those related to the energy transition, such as solar and wind power generation. We expect that the levels of these investments will remain at around ten percent of gross domestic product (GDP) per year – the report stated.
S&P stated that the still high level of inflation will probably lead to the postponement of some investments. In December last year, the inflation rate in Montenegro reached a peak of 17.15%, fueled, according to S&P, by jumps in food and energy prices.
