In the latest report, the World Bank (WB) has increased the Montenegrin economic growth forecast for this year to 4.8%.
– That is 1.5 percentage points more compared to the June forecasts – shows the published report of the WB on economic trends for the region of Europe and Central Asia.
In the latest report, the WB forecasts the growth of the Montenegrin economy in the next year by 3.2%, or 3.1% in 2025. That is 0.1 percentage point, or 0.2 percentage point more than the June forecasts.
The WB expects that growth in Montenegro will remain strong at the level of 4.8% this year, thanks to private consumption and export of services, while investments will remain lower.
However, the slowdown of the global economy weighs on Montenegro’s prospects. Declining growth in private consumption over the next year and into 2025 is expected to lead to slower average growth of 3.2%.
– On the fiscal side, while one-time revenues will result in a lower than planned deficit of two percent of GDP this year, it is expected that the fiscal deficit will remain elevated at 3.9 and 3.6% of GDP next year and in 2025 – the report states.
Public debt is expected to rise from 62.1% of GDP this year to 66.1% next year.
– Given the tightening of global financial conditions and the significant financial needs of Montenegro from now until 2025, prudent fiscal management is necessary, especially in terms of expenditures, including the implementation of the reform of the pension system and public administration – they believe in the WB.
