The previous period was marked by strong price growth. The inflation rate in September was 16%, while the inflation rate in the first nine months was 11.6%. The most significant contribution to the inflation rate during the previous period is the growth of food and fuel prices. Such price trends had a significant impact on […]
Montenegro economy briefing: Inflation and Economic Policy Read Post »
According to the preliminary data, in the period January-September 2021, the current account deficit was 249.2 million euro and was lower by 71.1 percent relative to the same period of 2020. Narrowing of the current account deficit is a consequence of the increase in surplus on the account of services, the primary and secondary income
Montenegro, Recent Economic Developments, External Sector, Current Account Read Post »
In the period January–September 2021, the portfolio investments account recorded a net outflow of 396.5 million euro, while the net outflow on the other investments account was 294.4 million euro. The main drivers of developments on this account were lower borrowing of the State, as well as of banks and other sectors, on the account
Montenegro, Recent Economic Developments, Financial Account Read Post »
At the end of Q3 2021, the main characteristics of the financial sector are stability and moderate level of systemic risk. Temporary measures of the Central Bank, which enabled moratorium and restructuring of loans to the clients of banks, acted as stabilising factors both on the finances of the real sector and citizens, as well
Montenegro, Recent Economic Developments, Financial Sector Read Post »
The COVID-19 pandemic continued to bring uncertainties in 2021 for employment, and affected the labour market indicators. Restrictions in terms of mobility were in force at the beginning of the year, dealing with inter-city movement and working hours of business premises. Mass immunisation of the population started from May and majority of measures dealing with
Montenegro, Recent Economic Developments, Employment and Wages Read Post »
The inflationary developments in 2021 are under impact of an increase in aggregate demand, bottlenecks in global supply chains, and basic commodities prices trends in the global market, primarily of the crude oil. Official MONSTAT data show an increase of year-on-year inflation for 11 months of 2021 of 2.2 percent, whereby the strongest positive contribution
Montenegro, Recent Economic Developments, Inflation Read Post »
The banking sector of Montenegro made a strong contribution to the Montenegrin economy rebound, which was heavily affected by the COVID-19 pandemic in 2020. The banking system in Montenegro maintained stability, high liquidity, preserved profitability, and good capitalisation in 2021 as well. All key balance sheet items recorded an increase on annual level, and so
Montenegro, Recent Economic Developments, Lending Activity of Banks Read Post »
We have witnessed a marked increase in real estate prices in the last few months. The reasons for this growth are seen by some in the huge inflation that started a chain of price hikes in malls all over the world, while a smaller number believe that the current rise in apartment prices in Montenegro
Montenegro, Analysis of the construction sector Read Post »
The IT industry in Montenegro has been growing strongly in recent years, and now a lot of Ukrainian and Russian programmers have arrived. Although the state gives millions to this sector, business barriers drive some of the largest IT companies out of the country. As in the whole world, information technologies (IT) are a huge
Montenegro, Expansion of the IT sector Read Post »
In spite of the negative effects of the coronavirus pandemic and contraction of the gross domestic product of 15.3 percent in 2020, the Montenegrin economy is recording a strong recovery in 2021, primarily due to successful tourism season, advancements in immunisation, and an open door policy, as well as because of the effects of improved
Montenegro, Recent Economic Developments, Gross Domestic Products Read Post »
