09 Oct 14
IMF Downgrades Montenegro’s Growth Forecast
The IMF has revised its forecast of Montenegros’s economic growth downwards from 2.8 per cent anticipated in April to 2.3 per cent.
The IMF has lowered its prediction of growth in Montenegrin GDP from 2.8 per cent to 2.3 per cent amid concerns of the impact of the eurozone crisis and sluggish demand for goods and services.
In its half-yearly World Economic Outlook, released on Wednesday, the IMF warned that Montenegro could register a deficit of 17.8 per cent of GDP in its balance of payments this year, while next year the gap could amount to 23.7 per cent.
Consumer prices in Montenegro will drop 0.6 per cent this year, while in 2015 they could rise by 1.3 per cent.
The IMF lists Montenegro among the “emerging” countries of Europe, together with Turkey, Poland, Romania, Hungary, Bulgaria, Serbia, Latvia, Lithuania, Bosnia, Croatia, Macedonia, Albania and Kosovo.
According to the IMF, the region is likely to see 3.8 per cent growth overall in 2014 and 4 per cent growth in 2015.
The IMF report said countries in Southeast Europe were likely to experience slower growth in 2014 partly because of the severe floods that struck Serbia and Bosnia in May.
Growth is likely to pick up in 2015, however, as governments spend money on reconstruction, rebuilding flood-affected areas and, in some countries, employment grows.
Source: Balkan Insight (Montenegro)