PM Marković at Chamber of Commerce of Montenegro: We have achieved GDP growth of 3.2%

Prime Minister Duško Marković attended earlier today the session of the Managing Board of the Chamber of Commerce of Montenegro. The "Fiscal Analysis on the National and Local Level" was presented at the session.

PM Marković said that the Government of Montenegro is carefully making decisions in order not to jeopardise the business environment, but that it could still face a high budget deficit and public debt.

President of the Chamber of Commerce of Montenegro Velimir Mijušković pointed to the challenges that businessmen face. Businessmen think that administrative fees at the state and local level are high and disproportionate to services. Also, taxes and contributions on wages are considered burdensome, and they are not in agreement with the announced VAT increase of two percent.

Businessmen also made suggestions for improving the business environment, including expanding the tax base, further differentiating the VAT rate, and increasing the number of food products to which a unique lower VAT rate would apply.

The Prime Minister thanked for useful analysis and suggestions and promised that the Government would carefully consider them. He recalled that implementation of certain measures, such as VAT increase, would not start in six months in order to review all aspects and possibilities for possible correction during that period.

PM Marković told businessmen that the Government will always be their reliable partner. He pointed out that foreign investors and their investments are very important for Montenegro, but so are domestic companies, and if they cannot absorb money, then the full benefit of investments will not be felt.

Emphasising the success of previous economic policy, Prime Minister Marković said that real GDP growth of 3.2 percent was achieved in the first quarter, which is significantly higher than in the countries of the region or the European Union. He said that the Government is facing restrictions, such as slowed administration and fear of decision-making, in order to achieve economic growth. He also urged businessmen to work together with the Government to fight the grey economy.

Deputy Prime Minister for Economic Policy and Financial System Milutin Simović and Minister of Finance Darko Radunović also attended the session.