It has been reported that the first three quarters of 2015 were marked by an increase in the current account deficit, but also increase the inflow of foreign direct investments, which amounted to €601.6 million. “The banking system is stable, solvent and liquid,” it has been said at the meeting.
Data on the economic activities of the world’s largest economies continued positive developments in the third quarter of 2015 too, but the global economy is not expected to have a strong annual growth which would significantly influence creating vulnerability during the crisis.
The slowdown in the dynamic growth of China and the global political instability lead to increased uncertainty and adversely affect economic trends.
The domestic environment is characterised by the growth of almost all major sectors of the economy compared to the same quarter of 2014 and therefore almost all international institutions have revised their growth forecasts for the Montenegrin economy.
According to estimates of the Central Bank of Montenegro for three quarters of 2015, real growth of Montenegrin economy was around 3.8% (central growth projection).
“There was positive inflation in this period, reflecting a slight improvement in the economy and the recovery of aggregate demand,” the Central Bank stated.
Reduced liquidity and inadequate recovery of the real sector were still the most important risk for the three quarters of 2015, which is recorded in the present credit risk in the banking sector.
In addition to real sector, the Council discussed the situation in the fiscal and financial sectors, as well as the sector of relations with other countries. The increase in fiscal risk, due to the pressure of public debt, has been evident and the assessment is that the risk is moderate, as there are positive trends in fiscal data, where current spending is balanced.
In line with these developments, dynamics of increasing public debt caused by the current consumption was slowed down. Also, it was estimated that the likelihood of materialisation of fiscal risk was reduced with the current rate of real growth and stability of the business environment.
The Council supported activities on the implementation of ESA 2010 methodology in the Montenegrin system, as well as adjusting reserve requirement policy with the EU requirements.
Council also discussed and supported measures to revive the capital market. It also supported the initiative on cooperation of financial supervisors in the future.
