Manja slova Veća slova RSS

Ask the Government

                               Ask the Government

Montenegro among best in Europe in terms of real GDP growth, B1 rating confirmed, changes outlook to stable

Published date 30.09.2017 12:00 | Author PR Service

Ispis Print

According to the data published by the Statistical Office of Montenegro, Montenegro recorded a strong economy growth which reached 5.1 percent in the second quarter of 2017, which means that the country is placed in a fifth position in Europe when it comes to the growth rate. According t the statistical data, the real GDP growth rate was 4.2 percent in the first quarter of 2017. The global credit rating agency Moody’s also confirmed the long-term Montenegro’s B1 credit rating, with the perspective for improving from the B1 “negative” to the B1 “stable”.

Four countries are ahead of Montenegro in terms of real economy growth rate, namely Malta (6.4 percent), Romania (5.9 percent), Ireland (5.7 percent) and Estonia (5.7 percent). The rate of 5.1 percent is the highest growth rate in our country since 2008, or since the outbreak in the global crisis. Montenegrin economy has also reached real growth rate of 4.2 percent in the first quarter of 2017, which is one of the highest growth rates in Europe.

Positive economy trends in Montenegro were also registered by the credit rating agency Moody’s which has affirmed the long-term B1 credit rating with a perspective to change the outlook for one level: form B1 negative to B1 stable. The key drivers for the change are related to the strengthening of the fiscal stability based on the fiscal consolidation measures, the mid – term economic growth based on the implementation of big investment projects in infrastructure, tourism and energy, as well as Montenegro’s membership in NATO and progress in the EU accession process. The aforementioned improvement creates space for more favourable entrance to the international financial markets and strengthening the country’s international investment position.

What does the data on our respectable economic growth show?

The growth in various sectors such as the construction, forestry, agriculture, beverage production, trade, tourism and many others has contributed to the economy growth.

In the first eight months of 2017, Montenegro has recorded more than 10.5 percent nights spent by tourists comparing to the same period last year.

How does this reflect on unemployment – the biggest challenge of Montenegro?

Strong economic growth and the overall economic activity in Montenegro in the first half of 2017has contributed to creating new jobs. The average number of employees in the first six months has increased for 6.314 comparing to the same period in 2016. At the same time, the trend of reducing unemployment has continued following the reduction of the unemployment rate to 15.1 percent at the end of the second quarter of 2017, while reducing the administrative unemployment rate to 20.99 percent in the second half o September.

How does the economic growth reflect on the salaries?

The average net wage has increased to EUR 509 in August, nominally 1.4 percent more than in the same month last year. The average net wage in the first eight months of 2017 amounted EUR 510 with an increase both nominally and in the real terms. 

How did we make success?

At the beginning of its mandate, the Government of Montenegro has defined sustainable and inclusive economic growth as a major goal of the economic policy aimed at reaching the GDP per capita and the quality of life of the most developed countries.

The Government will continue implementing economic policy measures in order to strengthen the macroeconomic stability and improve the competitiveness. In that regard, fiscal consolidation measures incorporated in the Fiscal Strategy of the Government of Montenegro and structural reforms has made significant results in terms of boosting competitiveness of the Montenegrin economy. Montenegro’s progress has been also identified by the World Economic Forum as the country has climbed up by five places according to the Global Competitiveness Report. Fiscal consolidation measures have also contributed to strengthening the macroeconomic stability and boosting the sustainable economic development. ( )

In the concrete terms, fiscal consolidation measures contributed to collecting EUR 1.11 billion of the budget revenues in the first nine months of 2017, which is 3 percent more comparing to the same period last year. At the same time, the budget expenditures are below the planned ones. 

Responsible economic policy of the Government of Montenegro has been recognized by the International Monetary Fund, which estimated in its newest report that the Government is managing the economy well and that fiscal consolidation measures are well balanced. ( )

What are the Government’s plans for the coming period in terms of the economy? 

The first results of the economic policy are encouraging and Montenegro has made a significant progress in almost all the fields and parameters. The Government will continue improving the business environment in cooperation with all the relevant stakeholders in the society. This is the most important condition for further influx of investments and development of the real sector, as the most important generators of sustainable economic development and employment growth having in mind that this is one of the most important socioeconomic challenges in the country.