Montenegro expects economic growth in 2011

According to 2011 Economic Policy, adopted Thursday by the Government of Montenegro, the next year is expected to be a year of economic growth, Deputy Prime Minister Vujica Lazovic told the press after the Cabinet meeting, underlining that the Policy is aimed at dynamizing economic growth and reinforcing liquidity and competitiveness.

The GDP growth is projected at 2.5%, employment growth at 1.3 % and inflation at 2.2%. “The unemployment rate will be 11.3% and foreign debt will partly rise above EUR 960 million, which stands at 30.4% of GDP,” said Lazovic, adding that the flow of net foreign investments is estimated at EUR 880 million.

DPM Lazovic announced important measures in terms of fiscal policy, namely the continuation of restrictive policy regarding state administration expenditures, increase in budgetary expenditures for development projects only, and continuation of pension system reform, expecting projects of Eurobonds and possible minimal credit loans to contribute appreciably to the Budgetary balance.

He also highlighted Government’s determination to enhance economic activities through the advancement of business environment and strengthening banks’ credit liquidity. “As an important priority within the 2011 Economic Policy we see creating opportunities for the establishment of a development bank,” stated Lazovic.

The Government expects in the next year a high level of investors’ interest in Montenegro, the completion of bid for River Moraca hydropower plants, and inauguration of the construction of Bar-Boljare Motorway, concluded Lazovic.