Montenegro overview

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In Montenegro we focus on:

Expanding the economic base through enhancing competitiveness. Although the Montenegrin economy grew rapidly in the pre-crisis period, this growth was unbalanced, driven by a credit-fuelled boom and the propping-up of old and uncompetitive industrial enterprises. The EBRD will support moves to a more balanced growth path through targeted support for small and medium-sized enterprises in all sectors with growth potential and through further strengthening of the financial system

Supporting sustainable tourism, property and associated environmental and infrastructure needs. Montenegro’s tourism sector is likely to be a major growth driver for the country. However, the institutional and infrastructure requirements to unlock this potential are not yet in place. The EBRD will support sustainable practices with strong emphasis on environmental sustainability. Where appropriate, private sector solutions, including Public Private Partnerships, will be sought.

Promoting energy security and efficiency and regional integration of energy markets. There is virtually no competition in this sector and commercial and technical losses in distribution are significant. Montenegro has the potential to become a regional energy hub in the medium to long term. The EBRD will support important interconnections with countries in the region and will invest in projects that improve energy security, advance energy efficiency and lead to greater competition in the energy market.

The EBRD’s latest Montenegro strategy was adopted on 6 November 2013

Current EBRD forecast for Montenegro’s Real GDP Growth in 2015 3.0%

Current EBRD forecast for Montenegro’s Real GDP Growth in 2016 3.7%

In Montenegro, growth in 2014 was disappointing at around 1.5 per cent, but a pick-up is expected this year and next, primarily driven by a major Chinese-financed highway project. However, the tourism sector, a major sector of economic activity for the country, could suffer if visits from recession-hit Russia decline, as arrivals from Russia make up around 25 per cent of total tourist arrivals in Montenegro. We therefore expect growth of around 3 per cent this year, but rising to 3.7 per cent in 2016 as progress on the highway project accelerates and tourism receipts rise again.

Montenegro in the EBRD’s 2014 Transition Report

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