EBRD keeps Montenegro’s 2014 GDP forecast at 2.0%

By bne IntelliNews January 21, 2014

The European Bank for Reconstruction and Development (EBRD) expects Montenegro's economic growth to speed up to 2% in 2014 from 1.5% estimated for 2013, the bank said in the January edition of its Regional Economic Prospects keeping unchanged the forecasts from the previous edition of the report in November

In 2014 growth will be driven by both external and domestic demand, the bank said.

The EBRD’s 2014 outlook remains considerably less optimistic than the government’s expectations for a 3.6% GDP expansion this year. It is also below the latest projections ​of the EC and the World Bank for 2.3% and 2.5% growth in 2014, respectively.

Economic activity in Montenegro started recovering in the first half of 2013 underpinned by rising exports, the EBRD underscored. However, the country’s current account deficit remains among the region’s highest at around 20% of GDP.  Montenegro’s fiscal position has weakened after the payment of EUR 103mn of state guarantees on aluminium producer KAP’s loans in August 2013. The public debt has increased sharply in recent years, the EBRD also said.

Montenegro’s outlook will remain below the average for the SEE region in both 2013 and 2014 (of 2.0% and 2.1% respectively).

South East Europe, GDP, y/y,% 2012(e) 2013(f) 2014(f)
Albania 1.6 1.5 1.7
Bosnia -0.5 0.8 1.8
Bulgaria 0.8 0.7 1.8
Kosovo 2.5 2.5 3.5
Macedonia -0.3 3.0 3.0
Montenegro -0.5 1.5 2.0
Romania 0.7 2.5 2.4
Serbia -1.7 2.2 1.3
South East Europe 0.4 2.0 2.1
Source: EBRD, REP January 2014      
Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

EIF signs guarantee agreements with 11 banks in Western Balkans, unlocking €750mn for small businesses

The European Investment Fund (EIF), part of the EIB Group, said on April 15 that it has signed guarantee agreements with 11 banks and financial intermediaries in the Western Balkans. These ... more

EIB surpasses investment milestone in the Western Balkans by investing €1.2bn in 2023

EIB Global, the financial arm of the European Investment Bank (EIB) for activities beyond the EU, set a new record by investing €1.2bn in the Western Balkans in 2023, the EIB said on February 9. ... ... more

bne IntelliNews Southeast Europe Outlook 2024

This Southeast Europe Outlook 2024 has been prepared by bne IntelliNews as part of a series of annual reviews providing updates on the geopolitical, macroeconomic and commercial state of ... more

Follow Us On

Most Read

  1. Iran vs Israel: Who is better equipped for war?
    5 days ago
  2. Saudi Arabia to scale back plans for Neom city
    8 days ago
  3. BREAKING: Iraq, Syria and Jordan close airspace amid Iranian strike on Israel
    5 days ago
  4. PANNIER: Caspian military drills that exclude Russia and Iran have some people in Moscow asking questions
    6 days ago
  5. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    5 months ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    19 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    23 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. UBN: Russia could take the Baltic states in 48 hours
    28 days ago
  5. BRICS announce a blockchain-based payment system to create a common currency
    21 days ago

Reports

Dismiss