Government projects average GDP growth of 3.6% in period 2013-2016

Podgorica, Montenegro (7 June 2013) – At yesterday's session, Montenegro's Government adopted the guidelines of macroeconomic and fiscal policy for the period from 2013-2016.

The guidelines define a key macroeconomic indicator – the average growth of GDP for the period, which is projected at 3.6% (4.5% in 2016), Finance Minister Radoje Žugić told the press.

The GDP growth is expected to result from a mild rise in the population’s consumption and strong growth in investments, in particular in the priority fields of tourism, energy supply, transport, agriculture and rural development, he explained.

Minister Žugić added that the guidelines also define key fiscal goals such as levels of budget deficit and public debt. Level of the budget deficit is projected below 1% in 2016. Public debt, which is now somewhat above 51%, will experience a mild growth in the coming period, then failing to about 50% of GDP in 2016.

According to the projections, foreign investments will have stable but dynamic growth in the coming period at the rate of about 11.5% of GDP, the Finance Minister stressed.

Level of inflation, as one of generators of the overall economic development, is forecast at the rate of 3% in 2013 and until 2016, the average growth rate of prices will be 2.5%.

The guidelines also envisage a mild increase in loan activities and expect banks to support all profitable and development projects in the period 2013-2016, Minister Žugić concluded.