January 18 (SeeNews) - The European Commission's Directorate-General for Economic and Financial Affairs (DG ECFIN) said it cut its projection for Montenegro's 2017 economic growth to 3.4%, half of a percentage point lower than its previous forecast announced in October.
The economic growth rate of Montenegro is estimated at 2.7% in 2016, down 0.9 percentage point compared to the October forecast, DG ECFIN said in its January 2017 EU Candidate & Potential Candidate Countries’ Economic Quarterly (CCEQ) Report.
DG ECFIN expects Montenegro's GDP to grow by 3.1% in 2018.
The unemployment rate is expected to fall to 17.3% in 2018 from 17.6% in 2017 and 17.8% in 2016, while inflation is projected to quicken to 1.2% in 2017 and 2.0% in 2018, from 0.5% in 2016.
Annual output growth decelerated slightly in Albania and Montenegro in the third quarter of 2016, but both countries continued to benefit from strong investment and exports, DG ECFIN noted.
Earlier this month, the World Bank said it expects Montenegro's economy to grow by 0.5% in 2018 and post zero growth in 2019.
The World Bank forecasts Montenegro's economic growth at 3.2% in 2016 and 3.6% in 2017.
DG ECFIN reports to the European Commissioner for Economic and Financial Affairs, Taxation and Customs, Pierre Moscovici. It designs policies to promote sustainable economic growth, a high level of employment, stable public finances and financial stability.