Montenegrin Competitiveness to Meet Global Economic Trends

By , 24 Apr 2019, 23:50 PM Business
Montenegrin Competitiveness to Meet Global Economic Trends Copyrights: Government of Montenegro, Flickr

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24 April 2019 - "I am convinced that as a society we are creating less than we can and that it entails inadequate competitiveness and inefficient valorization of development resources," Prime Minister Duško Marković said, answering the question of MP Boris Mugoša. 

The Prime Minister emphasised that as long as the theme of strengthening export potential does not become the focus of all segments of society, Montenegro must take care of it every day, building the capacity for all economic and social actors in this process to find their place.

"The issue of reducing the foreign trade deficit and increasing competitiveness is the priority of the Government as a whole, and more responsibility lies with a number of its departments. But this issue must equally be a priority for both business people and employees and associations of employers and trade unions. We are interested in providing new value to the citizens through income, and we can only distribute it if we create it first," Prime Minister Marković stated.

When it comes to dealing with the foreign trade deficit in the field of agriculture and energy, the Prime Minister recalled that he informed MPs a few months ago about the concrete steps the Government has taken on the issue.

"Through contracts concluded for long-term lease of agricultural land, as well as the lease agreement for the purpose of building a solar power plant in Briska Gora, the Government made a step forward and from the role of the creator of the business environment, it transformed into the role of investor, that is, property owner who wants to put it into operation, and get a new value from it," the Prime Minister said, emphasising that every inch of Montenegro has a value and that it has to be valorized in a sustainable and efficient way.

"This is the time when we need to change our approach and set our vision in line with the trends of major markets and global economies," Marković stressed out.

When it comes to state property, the Prime Minister pointed out that the Government would give priority to its valorization, and that competent ministries must be available to entrepreneurs, as lines and budget support programmes are provided. All this makes sense only if the citizens and their families will benefit from it.

The Prime Minister recalled that in 2018, in cooperation with the Chamber of Economy and in partnership with retail chains, a programme for the promotion of products called "Buy domestic products" was launched.

"Every day we work to create the conditions for the cheapest placement of Montenegrin services to foreign markets. Therefore, Montenegro actively participated in negotiations on the liberalization of trade in services through the conclusion of the CEFTA Additional Protocol 6," PM Marković said.

The Prime Minister announced that the Ministry of Economy will implement the "Programme for the Improvement of Economic Competitiveness" in 2019, with two lines of expertise and six lines of financial support worth 1.64 million EUR.

"After a long time, we record significant export results, so in the fourth quarter of 2018, the Montenegrin exports amounted to 106 million EUR, which is an increase of nearly nine percent compared to the fourth quarter of 2017. Analyzing this data, we are pleased with the fact that the import of food and animals decreased by 4% in 2018, which is a consequence of government policies aimed at expanding the production base and increasing the finalization of products in the agricultural sector. Also, the export of chemical products increased significantly, by almost 70 percent - primarily export of medical, pharmaceutical and other chemical products," the Prime Minister said.

"With the adequate involvement of all partners, especially the social and business community, it is indispensable to preserve and further improve the high growth rates of our economy, increase export potential, and thus improve the working conditions and quality of life in Montenegro," PM Marković concluded.

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