Žabljak
Vedro
-6.6 °C
Pljevlja
Vedro
-6.1 °C
Herceg Novi
Vedro
6.7 °C
Nikšić
Vedro
-2.6 °C
Cetinje
Vedro
7.3 °C
Bar
Malo oblačno
7.2 °C
Podgorica
Umjereno oblačno
2.5 °C
Ulcinj
Umjereno oblačno
6.5 °C
Kolašin
Malo oblačno
-6.4 °C

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Montenegro

22. 10. 2020. 00:00   >>  16:20 0

WORLD BANK

Montenegro will have the strongest recession in the region

Projections indicate that Montenegro will have the strongest recession in the Western Balkans region, estimated at 12.4 percent, mainly due to its heavy dependence on tourism. A strong second wave of the pandemic resulted in the worst recorded tourist season, according to the World Bank's Regular Economic Report.

As a result of the crisis, the already high public debt will reach a new high, which requires tight fiscal and debt management in the coming years. Assuming that the pandemic will be limited to the summer of 2021, strong economic growth is forecast in 2021, but a full recovery in GDP will not occur before 2020, they estimate.

"It will be crucial for Montenegro to maintain a strong debt reduction trend over the medium term and stay on the reform path to maintain macroeconomic stability and enable a strong and sustainable recovery," said Emanuel Salinas, World Bank Country Manager for Bosnia and Herzegovina and Montenegro..

"The pandemic has exposed Montenegro to key sensitivities, so resolving many of them have become urgent. This includes careful fiscal management by increasing the efficiency of public spending, providing a level playing field for the private sector, which will boost entrepreneurship, innovation and broad-based growth, as well as strengthening institutions while increasing their accountability, ”he added.

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