Supportive institutional framework and increased competitiveness crucial for futher Montengro economy growth, says PM Lukšić

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Budva, Montenegro (29 May 2012) – The continuity of economic growth is the key to prosperity and the most efficient way to combat unemployment, poverty, budget deficit and public debt, Prime Minister Igor Lukšić said at the opening of the conference entitled „Montenegrin Economy - Way to Economic Growth“ which takes places in Budva, Montenegro, on 29-30 May 2012.

The factors such as abundant natural resources, well-trained workforce and availability of new technologies can positively affect economic growth, but are not sufficient, PM Lukšić said. A supportive institutional framework, which implies structural reforms and cutting red tape, he added, is necessary if a country wishes to advance its economic development, encourage entrepreneurs, innovations and investments.

“The main international financial organisations, such as the World Bank are aware of the fact, and therefore, they have been measuring the quality of business environment in the countries throughout the world,“ PM Lukšić stressed.

In that context, the Montenegrin economy has to sustain efforts to prove its competitiveness, increase productivity and make people more active participants in the labour market.

“For this reasons, the reform of pension system, labour market and social welfare are crucial”, the Prime Minister noted, “as well as the reforms in the areas of health and education. The long-term successful implementation of these measures will guarantee dynamics and competitiveness of the society”, PM Lukšić remarked.

He also noted that the sector with the best prospects in Montenegro is energy. But Montenegro also sees its chance in the fields of tourism and agriculture, as well as in industry production, metal and wood processing, and various service sectors, which still, according to his words, can form the backbone of the country’s export.

PM Lukšić said that Montenegro has revised its 2012 Budget and introduced the anti-crisis measures in order to combat the economic crisis the entire Europe is dealing with. The public consumption has been reduced to 40%, and the public debt is expected to be reduced to 42% by 2016.

“That speaks volume of the credibility of our public finances. By pursuing reforms in terms of enforcing contracts, issuing building permits, starting a business, paying taxes and real estate registration we improve business environment for entrepreneurs and investors in Montenegro. The international competitiveness indicators are the confirmation that we are on the right track,” PM Lukšić concluded.