WB raised its forecasts for this year’s growth of Montenegrin economy

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World Bank (WB) raised its forecast of growth of Montenegrin economy for this year by 0.8 percentage points, to 3.7 percent.

In the January report, WB predicted Montenegro’s economy will strengthen this year by 2.9 percent.

However, according to its latest global economic outlook, to which news agency Mina-business had access, WB raised its growth forecasts for Montenegrin economy for the next year, and for 2018.

According to these forecasts, Montenegrin GDP is expected to grow 3.1 percent next year, and three percent in 2018.

January forecasts estimated growth would be three and 2.9 percent.

WB did not change the last year’s forecast, where Montenegrin economy was expected to grow 3.4 percent.

WB has lowered its growth projection for the global economy this year, to 2.4 percent, which is equivalent to last year’s growth and significantly lower than the projected growth of 2.9 percent in the January report.

“Slower growth in developed economies is hindering developing countries, while global trade and investment are at a disadvantage”, the report said, adding that perspectives of accelerating global growth remain subdued.

WB is particularly pessimistic about the countries dependent on exports of raw materials such as oil.

Since the beginning of the year, as WB assessed, increase in risk, such as the high level of indebtedness of companies in developing countries, which are exposed to the credit crisis in conditions of stagnant growth, is very noticeable.

Among the risks, WB mentions growing doubt about the aggressive loosening of monetary policy in developing countries.

WB report comes at a time when the drivers of global growth, such as Japan, Europe and the United States are struggling with lower rates of economic growth.

Serious slowdown in the US economy since the beginning of the year does not help raise economic growth of the rest of the world, which is why WB slashed its forecast for GDP growth in the US by 0.8 percentage points, to 1.9 percent this year.

The eurozone will grow by 1.6 percent, and Japan, which is struggling with deflationary pressures, is expected to rise 0.5 percent.

China will, according to WB forecasts, manage to achieve the projected growth rate of 6.8 percent this year, but it will slow down to 6.3 percent by 2018.

Source: Cafe Del Montenegro