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EC increases fcast for Montenegro's 2019 economic expansion to 3.1% - table

Author Radomir Ralev
EC increases fcast for Montenegro's 2019 economic expansion to 3.1% - table License: Creative Commons BY-NC 2.0

PODGORICA (Montenegro), November 7 (SeeNews) - The European Commission said on Thursday it has increased its forecast for Montenegro's economic growth in 2019 to 3.1%, from 2.9% predicted in May.

"The completion of the first section of the Bar-Boljare highway in 2020 will conclude a six-year period of fast expansion of the economy, but also of high external and fiscal deficits driven by this major public investment," the EU's executive body said in its Autumn 2019 Economic Forecast report.

Private consumption growth is set to benefit from positive wage and employment trends, in particular in the tourism and construction sectors, the Commission said.

"With the end of the construction works, it is expected that economic growth will decelerate while becoming more balanced, with corporate investment and private consumption driving growth and employment. The external and public sector balances are set to improve."

Montenegro's main economic indicators outlook (pct change), as per Autumn 2019 Economic Forecast report:

  2018 2019 2020
GDP growth rate 5.1 3.1 3.0
Private consumption 4.6 3.6 2.4
Public consumption 6.3 1.4 2.1
Gross fixed capital formation 14.7 3.2 2.6
Unemployment rate (as % of total labour force) 15.5 14.7 14.3