Montenegro’s Economic Outlook Is Strong for 2021 & 2022

Official stats show that the Economic Outlook for both 2021 and 2022 is strong for Montenegro as not only has it’s national debt fallen for the first time since they gained Independence, but along with their Balkan counterpart of Moldova, they will also see the highest levels of economic growth in 2021, amongst the ‘Emerging European’ nations.

Official stats show that the Economic Outlook for both 2021 and 2022 is strong for Montenegro as not only has it's national debt fallen for the first time since they gained Independence, but along with their Balkan counterpart of Moldova, they will also see the highest levels of economic growth in 2021, amongst the ‘Emerging European’ nations.

Due to the increased costs relating to the Covid Global Pandemic Montenegro’s debt in 2020 reached un-sustainable levels of 103% of it’s National GDP, however thanks to a recent repayment of the Eurobond which was issued in 2016, the debt will fall to a projected 87.37% by the end of 2021, and further payments will see it’s percentage fall even further to 71.7% by the end of 2023.

Foreign debt which accounts for around €3.65bn, is mostly down to the International Highway, with the largest creditor being China’s Exim Bank – and Montenegro has already asked the EU to help them pay for this. Other large debts include the IBRD which stands at €185m and the European Investment Bank at €105m. There are already plans in place by the new government to further repay more of this debt throughout the next few years.
The Vienna Institute for International Economic studies also recently released its Autumn forecast and it expects Montenegro to growing by around 8.4% (the largest growth for the Balkan Region and ‘Emerging Europe’), and the outlook for 2022 is also positive with predictions for Montenegro growing again by around 4.8%. Part of the reason for the growth is down to Tourism, which has jumped significantly since restrictions were lifted, and will continue to do so as Montenegro increases its presence Internationally, pushes on with its ambitions of joining Europe, and continues to attract Investors to its shores.

02.11.2021