June 9 (SeeNews) - Montenegro's gross domestic product (GDP) is expected to decline by 5.6% in 2020, due to the effects of the coronavirus crisis, the World Bank said.
The country's economy will partially recover by growing 4.8% in 2021, the World Bank said in its June 2020 Global Economic Prospects report published late on Monday.
"Tourist arrivals have collapsed in Europe and Central Asia, but the impacts may be felt most strongly in countries such as Albania, Croatia, Georgia, Montenegro, and Turkey, where tourism accounts for a sizable share of GDP," the World Bank said.
Moreover, a further tightening in global financing conditions could increase debt-servicing costs substantially, a particular risk in countries with already-high debt levels or large external financing needs, such as Albania, Croatia and Montenegro, the World Bank noted.
The World Bank also said it forecasts a 5.2% contraction in the global GDP this year, which will be the deepest global recession in eight decades, despite unprecedented policy support.