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Government forecasts partial recovery of the economy in 2021

On a proposal of the Ministry of Finance, Government has adopted Draft Law on the Amendments to the Law on Budget for 2020. Minister of Finance, Mr Darko Radunović, said that 2021 would bring partial recovery to Montenegro and 4,9% economic growth.

“Montenegrin economy was characterized by positive trends which resulted in significant GDP growth”, Minister pointed out.

Estimated real GDP fall this year – 6,8%

Considering the estimated FDI decline from 7% to 5,4% and estimated tourism revenues amounting to €650 million in 2020, real GDP fall in 2020 is estimated to be 6,8%.

“In 2021, we expect partial recovery of the economy and 4,9% growth”, Mr Radunović added.

He said that source revenues of the budget would be by €349,37 million lower and will amount to €1.705 million.

He pointed out that tourism would manifest greatest vulnerability and a real decline of 40%.

Re-classification of the budget expenditure has created additional fiscal space for financing Government measures to support economy for additional €45 million.

Minister Radunović said they hadn’t considered reduction in salaries yet.

 

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