The World Bank (WB) has lowered its forecasts for the growth of the Montenegrin economy for this year and the next. Thus, according to new estimates, GDP growth this year should be 3.4%. Analysts emphasize that small countries have the hardest time dealing with global economic turbulence, and WB recommends diversification of the economy and greater efficiency of institutions as countermeasures.
According to WB forecasts, the global economy is threatened by recession, the second in less than three years.
GDP growth in Montenegro, according to new WB estimates, should be 3.4%, which is 1.3% less than the June forecast. The reasons, they state, should be sought in high food prices, disruptions in trade and investment flows, as well as the spillover effect from the European Union.
“Small countries are generally more vulnerable. In the past 3 years, their GDP fell by as much as 11%, and the recovery is slower. They are more sensitive to multiple global crises. Small countries face difficult challenges. Their economies are not diversified. Most rely on tourism. During the pandemic, however, tourism collapsed and the economy declined”, says WB’s Ayhan Kose.
