Finance Ministry projects Montenegro economy's growth of 2.5% in 2014, 3.5% in 2015

Podgorica, Montenegro (25 September 2014) – At today’s session, Montenegro’s Cabinet updated the projections concerning the GDP and other medium-term macroeconomic indicators for the period 2014-2018, which form the basis for drafting the 2015 budget and the Pre-Accession Economic Programme.

The document includes the estimates of the public, local and budget spending, as well as the projections of the public debt by the end of 2014. At the same time, it gives the review of external factors that affect the growth projections, as well as the starting prerequisites for achieving macroeconomic scenario for the period 2015-2018.

According to the Statistical Office of Montenegro, Montenegro’s economy experienced real economic growth of 3.3% in 2013, and the projections made by the Finance Ministry says the economy will grow by 2.5% in 2014, and 3.5% in 2015. The growth model is based on the start of investment activities which will engage domestic potentials, primarily in the sector of construction.

Finance Ministry’s projections also show the following macroeconomic trends for 2014:

- Estimated employment growth at the level of 0.8%;
- Projected inflation at the rate of -0.5%;
- Budget will record revenues in the amount of EUR 1.307.1 million or 37.2% of the GDP. In relation to the plan for 2014, the revenue collection will be exceeded by EUR 31 million or 63.5 million compared to 2013;
- Budget deficit is estimated to be at the level of 1.9% of the GDP;
- Public debt will amount to EUR 1.957.5 billion or 57.5% of the country’s GDP.
- Share of foreign direct investment in GDP will fall to 9.1% and grow to 11.5% of GDP in 2015.