According to the projections of the World Bank, Montenegrin economy will be 2,8 % stronger this year, in comparison to the 4,4 %, recorded last year. The focus will still be on the implementation of fiscal consolidation, improving tax collection and job creation in the private sector.
Sanja Madžarević- Šujster presented Regular Economic Report for the Western Balkans and said that growth recovery is expected for the whole region in this year.
“ When compared to the previous year, when over 8 % of the total GDP was invested in the public infrastructure, this year we expect reduction of the rate in Montenegro”, said Madžarević-Šujster at the press conference.
“When it comes to growth and job creation, there’s a lot of room for an increase in the productivity of the public sector, which is supposed to be the leading generator for the creation of jobs”, she said.
The Government plans that the highway be completed through public-private partnership and Madžarević- Šujster said it came as no surprise.
“ That’s the way to achieve two goals – finish the highway and reduce fiscal risks. But in order to ensure compatibility with the European standards and take into account all fiscal risks, it’s important to define the regulatory framework for the public-private partnership”, she added.
“Last year a great amount of funds used for the highway construction was withdrawn. As a consequence, public debt remained at a pretty high level. This year, public debt will further increase”, she said.
The Report of the World Bank refers to Montenegro, Albania, Bosnia and Herzegovina, Kosovo, Macedonia and Serbia. The highest growth rates were recorded in Kosovo and Montenegro whereas in Serbia, the growth rate was lower due to negative shocks caused by terrible weather conditions. Surprisingly enough, negative trend was recorded in Macedonia too. Last year, Macedonia didn’t achieve any growth at all. The reason is probably the prolonged political crisis.
However, there has been a growth in the job creation, employment rate and the engagement of the workforce at the market.
“Some structural changes occurred at the labor market. Reduction of the unemployment rate among others, which is of great importance”, said Madžarević-Šujster.
As expected, Montenegro mostly had benefits from the tourism sector. The share of foreign direct investments was stable, and in Montenegro and Serbia it even went up.
“That means that foreign debt of Montenegro stabilized. Although the inflation grew, the real salaries in almost all countries of the Western Balkans grew as well. In Montenegro, however, that wasn’t the case”. She added.
The World Bank predicts growth of 2,5 % in the Montenegrin economy in the next year, which would be the lowest growth rate in the region.
