European Commission: Highway construction can be major driver of economic growth

    Brussels, Belgium (5 February 2015) – Montenegro experienced a slight economic recovery in 2014 and the progress was especially seen in the last quarter of the year, the European Commission states in its Winter Forecast report.

    In the first eleven months of 2014, the budget deficit narrowed to 0.7% of GDP from 3.7% in 2015. The reduction of the fiscal gap was underpinned by strong revenue growth, the report indicates.

    Positive momentum in further development in 2015 is to be created by intensifying works in two large tourism resorts, Porto Novi and Luštica Bay, and starting construction of the priority section of the Bar – Boljare highway, which, according to the European Commission, can become a major driver of economic growth in the coming years.

    It was also concluded that the entry of three new banks will contribute to the improvement of companies’ loan supply.

    Key 2015 economic challenges in terms of sustainability of public finance will be the issue of Eurobonds and funding of the highway, the European Commission’s Winter Forecast report underlines.

    Source: Government of Montenegro