Montenegro: Technical Assistance Report - Public Investment Management Assessment
IMF Staff Country Reports, June 9, 2022
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Bibliographic details
- Published: June 9, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400210891.002
Summary
- Public investment is expected to play a significant role in the post-pandemic economic recovery in Montenegro.
- The pandemic has had a deep economic impact due to the importance of the tourism sector.
- Government debt already exceeds one hundred percent of GDP, limiting fiscal space to increase public investment.
- The completion of the first phase of the Bar-Boljare Highway (BBH), by the end of 2021, should free up public resources within the budget constraint that could be used for public investments.
- A strengthened public investment management (PIM) framework would contribute to maximize public investment's impact on economic growth.
Context and constraints
- Sectoral vulnerability: tourism-dependent economy suffered deep impact from the pandemic.
- Fiscal constraint: government debt already exceeds one hundred percent of GDP.
- Project-specific development: completion of the first phase of the Bar-Boljare Highway (BBH), by the end of 2021, expected to free up fiscal resources.
Implications and recommended focus
- Prioritize strengthening the public investment management (PIM) framework to improve the efficiency and growth impact of constrained public investment.
- Reallocate resources freed by BBH completion toward productive public investments within existing budget constraints.
International Monetary Fund. Fiscal Affairs Dept. "Montenegro: Technical Assistance Report - Public Investment Management Assessment", IMF Staff Country Reports 2022, 166 (2022), June 9, 2022.
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