Montenegro's public debt grew 10.2% y/y to EUR 1.87bn at end-December 2013, underpinned by both rising internal and external liabilities, finance ministry data showed. The annual growth slowed slightly from a 10.9% y/y hike in November. The reading accounted for 56.7% of the full-year GDP forecast, up from 54.0% a year ago.
In monthly terms, the public debt edged down 0.7% in December after increasing 3.0% in November.
The end-December domestic debt grew by 8.8% y/y to EUR 440mn, easing from a 12% annual growth in November. The reading equalled to 13.3% of the full-year GDP forecast. The country's external liabilities rose 10.7% y/y to EUR 1.43bn (43.3% of GDP) at end-December, after climbing 10.7% y/y the month before.
Montenegro’s public debt has increased sharply since 2008 when it stood at just 29% of GDP. In 2014 the country plans to borrow up to EUR 358mn to service its debt and finance its budget gap and capital investments in various sectors.
The EC warned in its 2014 winter forecast that the rapid pace of growth of public indebtedness remains an important downside risk for its current forecast that sees the GDP growing by 2.7% in 2014. Montenegro's public debt is projected to rise to 57.9% of GDP by end-2014 due to rising public investments, the EC said. It will remain high at around 59% of GDP in the near term.
|Montenegro's public debt||Q1 12||Q1 13||Q2 13||Q3 13||Q4 13||m/m||y/y|
|% of GDP||53.97||53.03||53.18||55.77||56.57||/||/|
|% of GDP||12.85||12.69||13.37||14.52||13.29||/||/|
|% of GDP||41.12||40.33||39.81||41.24||43.28||-0,9||10,7|
|Source: Fin Min|
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