PM Đukanović: Global and regional economic cooperation key for growth

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Bucharest, Romania (26 November 2013) – Global and regional integration processes, particularly in terms of economy, are increasingly becoming prerequisites for development and growth, Montenegro’s Prime Minister Milo Đukanović emphasised in his speech at the China-Central and Eastern European heads of government meeting in Bucharest. In that regard, he particularly commended China’s willingness to be the initiator and partner in those processes.

Sustainable economic growth is a reality today in Montenegro, PM Đukanović said. Montenegro’s economy is on its recovery path, with estimated real GDP growth of 2.6 % in 2013, inflation of 3%, unemployment of 13.5% and public debt of 53% of GDP.

“We are aware that long-term and sustainable economic growth and development require openness of our economy and we believe they will strengthen Montenegro’s image as a reliable investment destination,” he explained.

Montenegro's National Development Plan defines tourism, energy, food production, and infrastructure as key development sectors, PM Đukanović emphasised, adding that expectations of investment growth in these areas are realistic.

He said that the amount of the initiated projects in tourism, as well as of those to be implemented next year, is around EUR 3 billion.

As to another key segment of Montenegro’s economy, the energy sector, PM Đukanović stated that Montenegro is becoming a country that exports energy, while its own production now covers 100% of consumption.

“And we have used about 50% of our thermal energy potential and only 20% of hydropower potential. Special incentive to energy development in Montenegro will be given through the undersea transmission cable that will transfer electricity from Eastern Europe to Italy and other EU countries,” he underlined.

He also voiced satisfaction with the foreign companies’ interest in constructing the second block of the Thermal Power Plant Pljevlja and with six serious offers coming from countries that are present at the meeting (China, Poland, Czech Republic, Slovakia).

Food is one of Montenegro’s great untapped resources, PM Đukanović said, expressing confidence that the growing interest of Chinese and other investors from Central and Eastern Europe can contribute to increasing quality of Montenegro’s products, especially when it comes to organic food production.

Prime Minister Đukanović also paid attention to infrastructure development, particularly referring to the successful Montenegro-China cooperation in starting construction of Montenegro’s highway, that is, its priority section.

He also welcomed the reconstruction of the Budapest-Belgrade railway, as well as the Belgrade-Bar section, which would improve and valorise port, trade, and tourism potentials and contribute to the strengthening of the interconnectedness of the region of Central and Southeast Europe. It would also open space for presence of companies and products from China in this part of Europe, PM Đukanović noted.

Mr Đukanović showed Montenegro’s interest in defining the project of the Adriatic- Ionian motorway, hoping that China could be a serious partner in the project and back up its implementation.

“These are major development projects that make Montenegro one of the most promising and most dynamic investment destinations in Southeast Europe," Montenegro's Prime Minister concluded.