The head of the Directorate for Financial System and Business Environment Improvement in the Ministry of Finance, Bojana Boskovic, said that after a slowdown in gross domestic product (GDP) last year, with 1.8 real growth rate, this year an accelerated economic growth has been recorded in Montenegro.
“In the first half of the year, 3.4% real economic growth was recorded. Based on the available indicators for the third quarter related to the growth of tourism, industrial production and positive influence of intensifying works on the project the highway Bar-Boljare construction, forecasts for this year of 4.3% are expected to be achieved,” Boskovic said after the government’s session.
The government approved autumn analysis of macroeconomic developments and structural reforms for the first nine months prepared by the Ministry of Finance.
“The document has been structured so that it provides an overview of developments in the international environment, macroeconomic developments in Montenegro for nine months, public finance and structural policies”, said Boskovic.
She added that the result of such positive growth trends in the tourism industry, in which revenue in the first nine months increased by 19.2% compared to the same period last year.
“Positive trends were also recorded in foreign direct investment (FDI). From January to September, FDI inflows amounted to €526.4m, which is 101 percent more than in the same period last year,” said Boskovic.
According to her, public revenues from January to September amounted to €1.11bn and were higher by 2.6% compared to the comparative period.
“Public spending amounted to €1.31bn and increased by 1.8% compared to the plans. State debt with deposits amounted to €2.15bn at the end of September, or 58.8% of GDP, whereas deposits amounted to €153.5m,” Boskovic explained.
She said that industrial production rose as a result of the growth in the manufacturing industry.
“The annual inflation rate in September was 1.7% and the average rate in from January to September was 1.6%,” explained Boskovic.
As she added, number of employees in September was 177,000 and it was by 1.2% higher compared to the same period. Number of unemployed people rose by 1.5%.
“The average gross salary in September was €720, i.e. net salary amounted to €477 – the same as in August,” said Boskovic.
Banking business was characterised, as she said, by the growth of deposits and capital and a moderate recovery in credit activities. The banking sector is solvent and liquid, with a high share of non-performing loans (NPL).
“All indicators show that by the end of the year we can expect 4.3% real growth rate,” Boskovic concluded.
