European Commission reduced estimation of the Montenegrin economic growth

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European Commission (EC) reduced, in new spring prognosis, the estimation of the growth of Montenegrin economy in this year to 3.6 percent.

EC prognosed a four percent growth of Montenegrin economy this year in its winter prognosis.

EC published a prognosis today that agency Mina-business had insight into, in which it stated that Montenegrin GDP will increase by 3.9 percent next year, unlike the previous prognosis from February which had it at 4.1 percent.

EC reduced the estimation of the growth of Montenegrin economy in last year from 3.9 to 3.2 percent, stating that after strong expansion in first three quarters of last year, the economy slowed down significantly in the last quarter, because of the sharp cuts in public spending.

“On the other hand, private consumption increased significantly in the last quarter”, it was stated in the report.

From EC was said that tourism and capital projects remain to be the main pillars of growth, although their contribution is a lot less stable than expected.

„Potential for growth is trapped by the slow recovery of loan activity of banks. Budget deficit is still very high because of the growth of public investments and social expenditures”, it was said from EC.

Middle term growth continues to rely on large infrastructural projects and direct foreign investments.

EC added thta the real growth of GDP is projected for a little less than four percent for this and the next year.

Source: Cafe Del Montenegro