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DPM Simović: Results of government's economic policy are encouraging as recognised by international partners

DPM Simović: Results of government
Published date 04.10.2017 14:22 | Author PR Service

Ispis Print

Podgorica, Montenegro (4 October 2017) -- Milutin Simović, Deputy Prime Minister for Economic Policy and Financial System, presented earlier today at the press conference the results of the Government's economic policy in 2017, saying that GDP is growing from quarter to quarter, that the number of tourists, all modes of transport, retail trade, agriculture, value of construction works, collection of tax revenues, direct foreign investments and exports are growing, and that due to everything mentioned, employment is rising and unemployment is falling and that the country's reputation and credit rating abroad are rising as well.

"According to Monstat data, in the first quarter of 2017, Montenegro experienced a real GDP growth of 3.2%, 5.1% in the second quarter, so we can say that a real GDP grew by 4.2% in the first six months of 2017," said the Deputy Prime Minister.

DPM Simović noted that the growth in construction activity in the first half of 2017 was  45.3% compared to the same period in 2016. Number of overnight stays in collective accommodation in the period January-August, when 17.3% more tourists visited Montenegro, grew by 10.5% compared to the same period last year.

Decline was seen in industrial production, except in the field of mining and quarrying, where a high growth of 124.7% was experienced in eight months due to increased coal mining and recovery of bauxite ore extraction. A significant decline, according to the Deputy Prime Minister, was also seen in the production of electricity due to drought.

"According to Monstat data for the first seven months of this year, sales and purchase of agricultural products, forestry and fisheries increased by 7.8% compared to the comparative period last year. The production of forest assortments from state forests in this period increased by 9.3%," the Deputy Prime Minister stated. He pointed out that it is particularly important that the export of raw logs declined, while the export of pellets and processed timber increased, which testifies to the fact that the Government made the right decision.

Speaking about transport, the Deputy Prime Minister for Economic Policy and Financial System presented the data for the period January-June 2017, which experienced growth of most types of transport. Passenger traffic at airports was higher by 23.0%, transport of goods by rail by 59.4%, while in the area of goods transhipment in ports, there was an increase of 50.6%.

In the period January-August 2017, foreign trade increased by 9.1% compared to the same period in 2016, with exports significantly increasing, while the increase in imports was lower.

"According to the data of the Ministry of Finance, in the period January-August 2017 there was an increase in the number of registered employees of 3.6% or an average of 6,314 registered employees more, with significant increase in the construction sector (8.8%). According to the Monstat Labour Force Survey, in the period January-August 2017, there was an employment growth of 3.5%, or an average of 7,800 employees was registered," said the Deputy Prime Minister, adding that the unemployment rate according to the Monstat Labour Force Survey in the second quarter was 15.1%, or 2.4% less than in the second quarter of 2016.

Deputy Prime Minister Simović explained that foreign direct investments in the period January-June 2017 amounted to EUR 220.0 million, which is an increase of 41.7% in relation to the same period last year.

"In the period 1 January-29 September 2017, EUR 1,116.1 million of tax revenue was collected. Compared to the same period in 2016, the collection was higher by 3.0%, or by EUR 32.8 million," said Deputy Prime Minister Milutin Simović.

At the press conference, the Deputy Prime Minister especially pointed out that international financial institutions and agencies recognised all of the above mentioned Montenegro's results. In the Executive Board's Report of 13 September, the IMF noted that the government was well managing the economy and that the fiscal consolidation measures were well balanced, while Moody's on 29 September improved the rating of Montenegro from B1 with negative outlook to B1 with positive outlook.

"Montenegro advanced five places and is ranked 77th out of 137 countries on the list of  the World Economic Forum's global competitiveness 2017-2018, which was issued on 26 September," said the Deputy Prime Minister.

He concluded the presentation by noting that the progress in functioning of the institutions of the system is considered the most significant by both the Government of Montenegro and the foreign partners.