## Germany: Selected Issues

_IMF Staff Country Reports, July 20, 2022_

## Source details

**Canonical URL:** [Germany: Selected Issues](https://www.imf.org/en/publications/cr/issues/2022/07/19/germany-selected-issues-521023)

## Other formats

- [Markdown version](/en/publications/cr/issues/2022/07/19/germany-selected-issues-521023/index.md)
- [Structured JSON version](/en/publications/cr/issues/2022/07/19/germany-selected-issues-521023/index.json)
- [Bundle manifest](/en/publications/cr/issues/2022/07/19/germany-selected-issues-521023/bundle-manifest.json)

## Bibliographic details
- Published: July 20, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400216688.002

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### Overview
- This Technical Assistance Report on Montenegro highlights Public Investment Management Assessment.
- The pandemic had a deep economic impact due to the importance of the tourism sector.
- Government debt already exceeds one hundred percent of gross domestic product, limiting fiscal space to increase public investment.
- Strengthening the public investment management (PIM) framework would help maximize the impact of public investment on economic growth.
- IMF estimates indicate that there is an efficiency gap of 35 percent.
- Public investment could better support the economic recovery if specific actions are taken to improve the PIM framework.

### Key findings
- Recent trends in capital expenditures and capital stock signal room for improving the efficiency of public investments in Montenegro.
- The authorities have introduced several reforms in recent years to strengthen the PIM framework.
- Through reform efforts, Montenegro has developed a stronger PIM framework but there remains significant room for improvement.
- Fiscal constraints are acute because government debt already exceeds one hundred percent of gross domestic product, limiting additional public investment financing.

### Policy recommendations and priority actions
- Strengthen the PIM framework to maximize the growth impact of constrained public investment.
- Target reforms to close the identified efficiency gap of 35 percent so that public investment more effectively supports economic recovery.
- Prioritize improvements across the public investment cycle (planning, selection, appraisal, budgeting, execution, and maintenance) to boost the productivity of existing capital stocks and capital expenditures.

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## Content in this bundle

- **Germany: Selected Issues; IMF Country Report No. 22/230; June 30, 2022**
  - [Germany: Selected Issues; IMF Country Report No. 22/230; June 30, 2022 (Markdown version)](/-/media/files/publications/cr/2022/english/1deuea2022002.pdf.md){rel="alternate" type="text/markdown"}
  - [Germany: Selected Issues; IMF Country Report No. 22/230; June 30, 2022 (PDF)](/-/media/files/publications/cr/2022/english/1deuea2022002.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2022/07/19/germany-selected-issues-521023_