May 3 (SeeNews) - Montenegro's Institute for Strategic Studies and Prognoses (ISSP) said it expects that the country's economic growth will slow to a real 3% in 2018 from 4% in 2017.
The expansion of the investment activity and spending in Montenegro is expected to slow in 2018, which will impact the real growth of the gross domestic product (GDP) for the entire year, the ISSP said in a report earlier this week.
A somewhat lower rate of household spending growth would be a consequence of smaller disposable income due to the increase in certain taxes in the second half of 2017. Also, the slightly higher projected inflation will affect the lower available income, the ISSP said.
The economic growth in 2018 will be largely driven by investment spending, which will expand at a rate of over 11% in 2018, despite the fact that very high investment growth of about 15% was achieved also in 2017.
ISSP is an independent economic institute established in 1998. It aims to make the ideas and challenges faced by companies at the micro level a guideline for macro-policy makers.