The deceleration of GDP growth signals a pressing need for economic diversification and enhanced competitiveness, stated Boris Mugoša, head of the Social Democrats (SD) parliamentary group and representative of the European Union.

“Examining the GDP growth over the last four quarters, calculations indicate that last year’s growth was approximately three percent, whereas the government had projected it at 3.8 percent. If these figures hold, it will mark the lowest annual GDP growth in eight years, excluding 2020 owing to the pandemic,” Mugoša explained.

He noted that last year experienced the lowest import-export coverage in 15 years, standing at only 15.1 percent, alongside the largest foreign trade deficit during the period, estimated at around EUR 3.5 billion.

Mugoša remarked that in recent years, investment activity has been on a downward trend, indicating that the proportion of gross investment in fixed assets relative to GDP is diminishing.

“This underscores the urgent necessity for systemic or structural reforms pertaining to the Montenegrin economy,” he emphasized.

According to the Fiscal Strategy, Mugoša added, Montenegrin GDP is projected to grow at an average rate of 3.7 percent over the next three years, despite forecasts from relevant international institutions suggesting a slower growth rate.

“To achieve a GDP level comparable to the current average of EU countries by 2050, our GDP would realistically need to grow by roughly six percent on average annually, according to various projections,” said Mugoša.

He further noted that it is also reasonable to expect that the GDP of EU countries will continue to grow during this period.

“This implies that we may not reach the same level, but we would certainly be closer than where we stand today,” Mugoša concluded.

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