World Bank raises Montenegro's 2023 GDP growth f'cast to 4.8%

In 2024, Montenegro's GDP is expected to grow 3.2%, a slight increase of 0.1 percentage points compared to its previous June forecast, the global lender said in its fall 2023 World Bank Europe and Central Asia Economic Update report.

"Over the past two years, Montenegro defied external headwinds, as GDP growth remained solid. However, multiple challenges loom and require attention, especially on the fiscal front, as the country approaches large debt repayments during 2024-2027 in an environment of high financing costs," the World Bank said.

Tourism is likely to surpass its 2019 level and continue growing, but declining growth prospects in the EU and the region may have negative effects on tourism.

The economic outlook is accompanied by potential downside risks. High geopolitical uncertainties could undermine growth prospects in Montenegro's key trading partners, and there are significant domestic risks due to political challenges. However, these challenges can be managed through the implementation of carefully designed and cost-effective policies, the report said.