IMF Slightly Raises Montenegro’s Growth Forecast

17 Apr 15

IMF Slightly Raises Montenegro’s Growth Forecast

Montenegro’s GDP is projected to grow by 4.7 per cent in 2015 and 3.5 per cent in 2016, the International Monetary Fund said in its latest report.

Dusica Tomovic


The IMF expects Montenegro’s economy to grow by a real 4.7 perc ent in 2015, slightly up from its previous forecast issued in February of 4.6 per cent growth.

The IMF expects the country’s economy to expand by 3.5 per cent in 2016.

Montenegro’s gross domestic product increased by 1.1 per cent in 2014, data from the April edition of the IMF’s World Economic Outlook report indicated.

Montenegro’s average annual inflation is forecasted to be 0.5 per cent and 1 per cent in 2015 and 2016 respectively, following deflation of 0.7 per cent in 2014, the IMF said.

Earlier this month, the Montenegrin government confirmed its projection for the country’s economic growth in 2014 at 2 per cent. It had said earlier it expected Montenegro’s economy to expand by 3.5 per cent in 2015.

In south-easte Europe, growth is projected to improve in 2015-16, driven by the rebuilding of flood-damaged areas in Bosnia and Herzegovina and Serbia, and by employment gains elsewhere, the IMF also said, adding that risks remain tilted to the downside.

“A deeper recession in Russia or a slowdown in the euro area poses external demand risks, while sudden increases in the US term premium and US dollar fluctuations could trigger market volatility in countries whose fiscal and external deficits are still sizable,” the report said.

Source: Balkan Insight (Montenegro)