Podgorica, (MINA-BUSINESS) – In its latest report, the European Bank for Reconstruction and Development (EBRD) has maintained its forecast for this year’s economic growth in Montenegro at 2.9 percent.

According to the report, the EBRD expects to see a three percent growth of the Montenegrin economy next year.

The EBRD has revised downward last year’s growth of the Montenegrin economy from 3.8 percent, as forecasted in September, to 3.1 percent.

The EBRD report states that GDP growth is estimated to have been lower last year than anticipated in September.

“Deceleration from the strong growth in 2022 and 2023 reflects a significant slowdown in tourism, after a record season in 2023. Growth in 2024 was driven by private consumption and gross fixed capital formation, supported by expansionary fiscal policy, rising wages and pensions,” the EBRD stated. 

However, net exports contracted, partly due to a significant decline in tourism growth after a record 2023, as the surge in tourists and immigrants from Russia and Ukraine abated.

Inflation declined significantly from its peak of 17.5 percent in November 2022, to 2.1 percent in December 2024.

“GDP growth is expected to moderate further to 2.9 percent in 2025 and 3 percent in 2026, as higher prices in the tourism sector may constrain demand, while the reconstruction of the Pljevlja power plant will increase electricity imports significantly. On the other hand, growing wages could support fast consumption growth,” the report concludes.

Photo: alejo15084 (CC0), Pixabay