PODGORICA (Montenegro), June 29 (SeeNews) - Montenegro's economy is expected to grow by 8.5% in 2021, the the European Bank for Reconstruction and Development (EBRD) said on Tuesday, improving its September forecast for 5.0% growth.
In 2022, Montenegro's gross domestic product (GDP) is expected to expand by 6.0%, the EBRD said in the latest edition of its Regional Economic Prospects report.
Montenegro's GDP contracted sharply by 15.2% in 2020, primarily due to falling services exports, the bank also said.
"The economy is expected to partially rebound in 2021, with GDP growth of 8.5%, helped by the strong contraction last year and the consequent positive base effect. Changes to the border policy this year should also support a partial recovery in the tourism sector," the bank added.
Downside risks are a possible weaker than expected recovery in tourism due to a prolonged impact of the pandemic as well as limited fiscal space to accommodate further spending should such needs arise, the EBRD said.
For the Western Balkans region, the EBRD expects economic growth of 5.1% in 2021 and 3.8% in 2022.