Government projects Montenegro's economy growth of 3.7% in 2014-2017

Podgorica, Montenegro (19 May 2014) – At today's session, Montenegro's Cabinet approved the Draft guidelines of macroeconomic and fiscal policy for the period 2014-2017.

Montenegro has emerged from the recession, and according to the preliminary data, it saw economic growth of 3.5% in 2013, Finance Minister Radoje Žugić told the press conference following the Cabinet meeting.

He added that the analysis projects the average growth rate for the period 2014-2017 is to be at the level of 3.7% (the European Commission has projected Montenegro's economy growth of 3.6% in 2015).

To this end, the government's economic policy will be focused on acheiving stronger growth rates and strenghtening of competitiveness aimed at more adequate evaluation of Montenegro's resources. The economic policy has defined tourism, energy, agriculture and infrastructure as key areas of Montenegro's development in the coming period.

 “It is necessary to implement numerous development projects in the sectors of tourism, energy, agriculture, and infrastructure, primarily referring to the highway's priority section. The total investments will amount to app. EUR 3.9 billion which is appreciably above our GDP and will generate the projected growth rate,“ the Finance Minister explained.

Futhermore, Mr Mr Žugić emphasised, it is necessary to stimulate loan support for development projects and to continue strong fiscal consolidation and activities focused on restructuring public debt.

“According to the realistic macroeconomic scenario, Montenegro will have an average foreign investment of 15.3% over the 3-year period, credit activities will be increased by 4.9%, investment in the basis capital will be increased at the rate of 6.7% as a response to a strong investment cycle , the capital budget, as the crucial development component, will also increase, as well as the export of goods and services (5.9%) and the employment," he pointed out. 

The economic analysis also projects Montenegro's budget surpluses for 2015-2017, FM Žugić underlined.

Commenting the statements insinuating that Montenegro is threatened with debt bondage due the highway priority section's construction, FM Žugić noted that those arguments has no foundation in the economic analyses based on the feasibility study of reputable scientists of economy and construction professions from Montenegro.

“The app. EUR 809 million investment will be valorised in the way that the annual loan rate will amount to EUR 45 - 50 million depending on the transport frequency and toll road, as well as whether Montenegro's part of EUR 15 million is to be financed through its capital budget thus decreasing the level of public debt,“ Finance Minister Žugić told the press earlier today.