Montenegro needs a new growth strategy

According to Deputy Governor of the Central Bank (CBCG) Zorica Kalezic, Montenegro needs a new growth strategy, as the previous one was based on infrastructure projects that did not result in increased productivity and added value.

Speaking at the panel focusing on the current crisis, held as part of the Economic Conference organized the Chamber of Commerce (PKCG), she said that it was necessary for Montenegro to be a part of the EU because it would like to share its values, not just EU standards, as one could exist without the other.

PKCG stated in a press release that Drakic recalled the statement by the International Monetary Fund (IMF) that the economy was on the right track but had not yet fully recovered.

Due to the geopolitical situation, the global economy is vulnerable and characterized by fragmentation, different levels of protectionism, and the emergence of new business barriers.

“Although the fragmentation cost estimates vary, greater restrictions on international trade could reduce global economic production by up to seven percent in the long term, or around US$7.4 trillion. This is equivalent to the combined volumes of the French and German economies,” said Kalezic.

According to her, the countries in the region stagnated in approaching European income levels during the crisis. As it stands now, it is estimated that Montenegro will need 40 years to reach the average income level of the EU and will have to implement structural reforms and macroeconomic policies to expedite this process.