Montenegro: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Montenegro

IMF Staff Country Reports, May 7, 2024

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Canonical URL: Montenegro: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Montenegro

The Montenegrin economy grew robustly by 6 percent in 2023 as consumption remained strong, tourism revenues exceeded pre-pandemic levels, and the influx of relatively affluent Russian and Ukrainian nationals due to Russia’s war in Ukraine contributed to growth.
Growth is expected to moderate to 3.7 percent in 2024 and ease further to about 3 percent over the medium term.
Diversification both within and away from the tourism sector is recommended to decrease the vulnerability of the economy to shocks.
A more conducive environment for a small and medium enterprises sector would enable it to benefit from the presence of skilled migrants in the country.

System-wide indicators of financial stability are described as healthy.
The Central Bank Governor needs to remain vigilant regarding lingering pockets of vulnerability.
To better inform policy judgments, trends in domestic advantage, as well as the banking sector’s growing exposure to foreign securities, need to be closely monitored.