IMF Staff Country Reports

Montenegro: 2018 Article IV Consultation-Press Release and Staff Report

Publication Date:

May 21, 2018

Electronic Access:

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Summary:

This 2018 Article IV Consultation highlights that Montenegro’s economy is growing strongly, boosted by the implementation of large investment projects, including the construction of the Bar-Boljare highway. Growth should continue over the medium term, albeit at a more moderate pace as highway construction ends. The IMF staff projects the economy to expand by 3 percent in 2018 and 2.5 percent in 2019, with fiscal consolidation also acting as a moderate drag on growth. Although the implementation of large publicly financed infrastructure projects has added to economic growth, the accompanying use of fiscal resources has contributed to a large increase in government debt. Economic growth should remain strong in 2018, notwithstanding fiscal consolidation, and maintain momentum over the medium term.

Series:

Country Report No. 2018/121

Subject:

Banking Capital spending Expenditure Fiscal consolidation Fiscal policy Fiscal stance Public debt