13 January 2019 - The growth of the economy in the current year is going to be much higher than the projected 2,8%. It will not be as high as it was last year, but it will significantly exceed the official forecasts, around 4%. Judging by all indicators, I am definitely sure that positive trends will continue, said Božo Mihailović, a professor at the Faculty of Economics at the University of Montenegro.
“This growth should be based on investments in agriculture, the energy sector, tourism, and the total real sector. This year as well, Montenegro will be an attractive investment destination. I welcome high capital budget for the current year since it will be a driving force. Our economy records high foreign trade activity, 12,2% is very high growth, considering all the problems we are faced with,” says Mihailović.
A significant problem of our economy is public debt as Mihailović stressed.
“By 31st September of 2018, it amounted to 3,093 billion EUR, or 67% of GDP. Internal debt amounts 460 million EUR. The old economic rule says that debt does not necessarily mean huge problem, but the key question is what the cause of indebtedness is,” pointed out Mihailović.
Mihailović also commented on the strategy of economic development saying that it listed key segments that should be in the focus- agriculture, energy sector, tourism, industry to a certain extent.
“I point out the small and medium-sized industry. Particularly, renewable energy resources, solar energy, wind energy. We have to focus on increasing the real economy because it is the only stable economy. Different political and other factors influence it the least," concluded Mihailović
