Montenegro and European Union

February 3, 2010. – Montenegrin officials rejected an estimate by the International Monetary Fund that its economy experienced the deepest recession in the Balkans and contracted by 7 percent.

Deputy Prime Minister Vujica Lazovic told to journalists that “all data show that the fall (of gross domestic product) was not so much.” Official estimation by the government shows 4.3 percent contraction in 2009.

Mr Lazovic also said that he doesn’t know “if they want to put us in an inferior position and announce that we are forced to launch an arrangement with the IMF or it is a result of forecasts based on research in the region.”

IMF officials announced that Montenegrin economy had suffered a serious blow in 2009, with no sign of a strong recovery to come.

IMF mission head Gerwin Bell epmhasized that his officials “estimate GDP to have declined by 7 %, which is somewhat steeper than elsewhere in the region.” The IMF also advised Montenegro to urgently adjust its economic policy. These calls for changes are not new, because many analysts have warned that Montenegro needs to restructure its economy, which has so far relied heavily on tourism and property market speculation.

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Comments

  1. It seems 2010 may make or break the country, with so much depending on the real estate market. On a positive note Russian investors are returning and there are early indications of a busy tourist season. Either way an IMF loan looks inevitable.

  2. there is an inherent limit to how far a country can go banking on cash inflow derived from phantom real estate market and tourism that are somewhat in a trade-off position…
    it appears as if the [eternal] govt. of MNE managed almost impossible – to make a 650K, touristic country an economically unsustainable environment…
    there has to be a golden raspberry for that…

  3. Thanks for the comments.

    AnarchoYuppie, this is very good statement you’ve made:

    “it appears as if the [eternal] govt. of MNE managed almost impossible – to make a 650K, touristic country an economically unsustainable environment…”

    Unfortunately, small and closed Montenegrin society is far away from democratic freedoms and citizens are easily influenced and pressured to keep the current government eternally.

    Therefore Montenegro needs support from E.U. and all true democrats to make necessary political changes.

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