Montenegrin Government predicts economic growth in med-term period

Podgorica, Montenegro (28/04/2011) – Government of Montenegro bases its projections on the reasonable assumption of medium-term economic growth of 3,2 per cent in 2011, 3,5 per cent in the period 2012-2014 and four per cent in 2015, Economy Minister Milorad Katnić told the press after the Cabinet meeting earlier today.

Minister Katnić underlined that “medium-term growth requires maintaining a relatively high level of FDI and overall investment coupled with productivity growth, private sector competitiveness and public spending reduction.”

He also said that the Government reasonably expects the second half of the med-term period to witness significant investment in tourism, which will be the main growth generator.

“Main fiscal anchors for the period 2012-2015 will include a budget deficit in 2012 below one per cent of GDP, balanced 2013 budget and budget surplus in 2014 and 2015,” Minister Katnić said, adding that the Government also plans to reduce public spending and debt, shrink subsidy and payroll expenditures, maintain the capital budget at around four per cent in the medium period and stimulate public-private partnerships.

Minister Katnić concluded by warning that “Montenegro is vulnerable to global market and Euro-zone turbulence,” stressing that “fiscal policy should be harmonised in order to ensure stability.”