The European Bank for Reconstruction and Development (EBRD) predicts that the growth of the Montenegrin economy will reach 3.5% this year, while the next will be 3.7%, based on the strong performance of the hospitality sector.
– The upcoming election of the new government has the potential to initiate the reform agenda and lead to greater public investments – according to the new EBRD report.
When it comes to this year, the EBRD states that the Montenegrin economy continued its strong growth, which amounted to 6.1% in the first quarter of this year, fueled by strong household consumption, a large influx of tourism and the arrival of a large number of Russians and Ukrainians.
Growth, they said, was also supported by strong investment activity and revival of electricity production, along with favorable weather conditions.
The EBRD also projects that this year’s tourist season will exceed the level before the pandemic.
– Tourist arrivals in the first half of the year were 13% higher than the record levels of 2019. Real net wages, boosted by the increase in the minimum wage and the abolition of health care contributions last year, continued to record double-digit growth rates in the first six months of the year – it states in the EBRD report.
The EBRD also warned that inflation remained high and amounted to 6.9% in July.
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