## 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](https://www.imf.org/en/publications/cr/issues/2022/02/23/montenegro-2021-article-iv-consultation-press-release-staff-report-and-statement-by-the-513459)

## Other formats

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## Bibliographic details
- Published: February 24, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400201332.002

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### 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

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- **1mneea2022001**
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_Source: https://www.imf.org/en/publications/cr/issues/2022/02/23/montenegro-2021-article-iv-consultation-press-release-staff-report-and-statement-by-the-513459_