Montenegro: 2021 Article IV Consultation — Press Release; Staff Report; and Statement by the Executive Director for Montenegro

IMF Staff Country Reports, February 24, 2022

Source details

Canonical URL

Montenegro: 2021 Article IV Consultation — Press Release; Staff Report; and Statement by the Executive Director for Montenegro

Other formats

• Markdown version
• Structured JSON version
• Bundle manifest

Bibliographic details

• Published: February 24, 2022
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9798400201332.002

Key findings: economic impact and recovery

• COVID-19 hit the economy hard, but a strong recovery is underway.
• The financial sector appears to have withstood the COVID-19 shock well.
• The government has embarked on a reform program "Europe Now", which aims to arrest outward migration through a sharp minimum wage increase, labor tax wedge reduction, and the introduction of a progressive tax code.

Public debt and fiscal stance

• Public debt, already elevated before the pandemic, has increased further.

Policy actions and structural reforms (Europe Now)

• Reform program objectives:
  • Arrest outward migration.
  • Implement a sharp minimum wage increase.
  • Reduce the labor tax wedge.
  • Introduce a progressive tax code.

Subject areas covered

• Expenditure
• Government debt management
• International organization
• Labor taxes
• Monetary policy
• Public debt
• Public financial management (PFM)
• Revenue administration
• Taxes

Keywords and analytical focus

• authorities' baseline scenario
• Europe
• Global
• Government debt management
• Labor taxes
• Montenegrin authority
• production GDP estimate
• staff growth estimate
• taxation regime

Content in this bundle

• 1mneea2022001
  • 1mneea2022001 (Markdown version)
  • 1mneea2022001 (PDF)