The United Nations’ projections indicate that Montenegro will be the second hardest-hit economy in Europe, said Mr. David Putin, the economist at the UN Montenegro.
“Unfortunately, Montenegro is one of the hardest-hit economies in Europe, our assessment is that Montenegro will be the second hardest-hit in Europe, after Spain. The reason is clear, Montenegro is a small open economy, dependent on tourism”, Mr. Putin said on the RTCG’s Morning show, referring to the UN’s World Economic Situation and Prospects 2021 Report.
Mr. Putin believes that every crisis is also an opportunity and that it is important for the Montenegrin economy to increase production.
“Montenegro has long been dependent on tourism and perhaps this is an opportunity for diversification and structural transformation, which could create new markets for better-paying new skills that can move Montenegro toward poverty reduction”, Mr. Putin said.
He also said that the UN prospects of Montenegro are not as bleak as those of the IMF.
“Certain indicators are suggesting there will be an improvement and return to normalcy, especially once the vaccination begins. Vaccination is not only important for Montenegro, but also for tourists who visit Montenegro, from Russia, Serbia… The vaccine is only a solution to a part of the problem, we need to talk about recovery in a broader sense, and how we can support it”, Mr. Putin said.
He added, however, that there is hope for the Montenegrin economy, especially due to significant growth rates in the previous period.
“Given that Montenegro is in the process of accession to the EU, it is well integrated into those markets, and in that sense, it must use such advantages for the recovery”, Mr. Putin said.
