The inflation we faced was inevitable in a small and highly open, euroized economy such as Montenegro. It is not a positive phenomenon, but it is a more benign problem when it appears as “imported” than when it comes exclusively as “domestic inflation”, says the Central Bank (CBCG) Vice Governor Nikola Fabris in an interview for Pobjeda.
He explains that inflation in Montenegro, which has contributed to reducing the purchasing power of citizens, is the result of price spillovers from international markets.
“Global inflation is partly a consequence of the monetary abundance that was created during the years of fighting the global financial crisis, and then the pandemic, and partly the war in Ukraine.
The whole world is facing inflation”, Fabrice has pointed out.
When commenting on the prediction of the growth rate of domestic economy this year, Fabris says that “given the high degree of uncertainty, the CBCG has prepared two scenarios. According to the lower growth scenario, the projected GDP growth rate is 3.2%, while according to the higher growth scenario, the projected rate is 4.6%. It should be noted that the current environment carries a high degree of uncertainty, and the projection will be updated throughout the year”.
Discussing the €1bn revenue from tourism this year, Fabris says that “the Government projection was made before the outbreak of the war in Ukraine, and it was optimistic at the time, but not unattainable. In recent months, the situation has changed significantly and it is evident that we will have a smaller number of tourists from Russia and Ukraine compared to the initially projected. Some of these tourists could be compensated from other markets”.
