Analysis of the Central Bank of Montenegro, CBCG, suggests that if the coronavirus crisis lasts for 60 days, the Montenegrin economy will increase moderately by 0.5%. If it lasts for three months, we will be around zero, and in case it extends to four months, we will enter a mild recession, the Governor of the CBCG, Radoje Žugić, said in a TV show titled Živa Istina.
He recalled that the CBCG’s earlier projection was that GDP would increase by 3.3% this year or even higher, because everything was going well in January. The coronavirus outbreak destroyed everything as its consequences are going to stagger the global economy.
Mr Žugić continued: “We are monitoring the world’s most reputable institutions on a daily basis and act in order to prevent what we can. When the global economy is faced with problems, small and open economies, like ours, suffer the most. Our economic base represents the basis for fiscal sustainability and financial stability. If it narrows, then we have problems.”
The Governor also reminded that the coronavirus appeared in Montenegro three months after it emerged in China, so we’ve had time to prepare for it.
According to him, small economies are more efficient and adapt more quickly to new circumstances. That is why he believes that Montenegro can make its economy sustainable.
