March 8 (SeeNews) - Standard & Poor’s credit rating agency affirmed Montenegro’s credit ratings at B/B with a stable outlook, the country's finance ministry said.
The stable outlook reflects the expectations that Montenegro's economic growth will continue to be supported by the tourism sector, the ministry said in a statement on Monday.
The agency expects the country's fiscal deficit and balance of payments risks to remain under control, it added.
The agency's expectations are that growth will slow down during 2023, the foreign ministry also said. Montenegro's real gross domestic product (GDP) grew by around 7% in 2022.
The budget deficit is expected to rise to 4.75% of GDP in 2023, as a result of state subsidies aimed at mitigating the effects of the crisis that affected the rise in the cost of living.
Foreign direct investments are expected to amount to about 10% of GDP in 2023, which will be primarily focused on hospitality, real estate and energy sector projects.
An improvement of Montenegro’s rating could be achieved in the case of faster fiscal consolidation, along with the expansion of the economic base, which would strengthen resistance to external shocks, the finance ministy also said.