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KOSTIC 27. 02. 2020.   >>  16:13 0


The impact on the economy will depend on the severity of the epidemic

The coronavirus outbreak has a negative impact on the Montenegrin economy, and what it will look like in the future depends on the eventual waning or transition of the epidemic to a more severe form, said professor at the Faculty of Management in Herceg Novi, Vasilije Kostic.

He told the Mina business that coronavirus is already having negative impacts globally.

The negative impact, as explained by Kostic, is reflected in the Montenegrin economy by postponing business and other decisions that have economic implications, which need not be made immediately, in anticipation of a more certain situation.

"Uncertainty is the least desirable environment for economic and any other activism, but right now it is exactly what is happening because of a potential coronavirus pandemic," said Kostic, who is also an economic analyst.

"In case of epidemic intensifying, it is possible to expect greater consequences for the global economy, and therefore ours. This can be especially expected in activities related to the movement of people, that is, trade and tourism, in the sense that the fight against the spread of the virus will require the reduction of already established relations and the new ones will be delayed,”explained Kostic.

He believes, however, that the initial fear of the virus, which is currently causing contractions on the economic front, will slowly decline in the coming period as we become more familiar with it.

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