Montenegro: Staff Report for the 2012 Article IV Consultation
IMF Staff Country Reports, May 23, 2012
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- Montenegro: Staff Report for the 2012 Article IV Consultation
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Bibliographic details
- Published: May 23, 2012
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475503876.002
Overview
- Date: May 23, 2012
- Summary: Three years after the sudden end of Montenegro’s boom, there has been considerable progress toward recovery. Fiscal imbalances have proved difficult to rein in, reflecting a large fall in revenue after the collapse of the boom. Executive Directors commended the authorities’ efforts to stabilize the economy and welcomed the progress made since the financial crisis. Directors also recognized the sizable public expenditure adjustment over the past few years, but underscored the need for further high-quality deficit reducing measures.
- Subjects: Banking; Expenditure; Financial institutions; Fiscal policy; Labor; Labor markets; Loan guarantees; Personal income; Public debt
- Keywords: commercial bank loan; CR; deficit; Europe; financing risk; Global; IMF staff representative; ISCR; Labor markets; Loan guarantees; privatization contract; staff appraisal
Key findings
- Recovery progress noted three years after the sudden end of the boom.
- Fiscal imbalances remain difficult to rein in due to a large fall in revenue after the collapse of the boom.
- Executive Directors commended stabilization efforts and progress since the financial crisis.
- Recognition of a sizable public expenditure adjustment over the past few years.
- Continued emphasis on the need for further high-quality deficit reducing measures.
Policy implications and recommendations
- Continue stabilization efforts to support recovery momentum.
- Prioritize further high-quality measures to reduce the fiscal deficit.
- Address revenue shortfalls stemming from the collapse of the boom to restore fiscal balance.
- Sustain public expenditure adjustment while ensuring measures are quality-enhancing.
Content in this bundle
- Montenegro: 2012 Article IV Consultation; IMF Country Report 12/122; April 27, 2012