Montenegro in 2013 achieved the highest economic growth in the region

Montenegro in 2013 achieved the highest economic growth in the region


By Adnan Prekic – Podgorica

National Statistical Office of Montenegro announced that the official growth of gross domestic product in 2013 was 3.3 percent. Montenegro is, according to these figures, leader in the region in thaat respece, while only three countries in Europe had a higher growth of their GDP. Public debt last year was 57.95 percent of the GDP, while in the first half of 2014 there was also a growth of the GDP at about 1 percent.

Gross domestic product in Montenegro at the end of 2013 amounted to 3.327 billion euros, and the real GDP growth during last year was 3.3 percent. The gross domestic product per capita in 2013 was 5,356 euros, while in 2012 it was 5,074 euros. The most significant contribution to the GDP growth came from the electricity supply sector, whose production was 38.7 percent higher than in 2012, while on the opposite side of the equation stood the financial services sector, with a drop of 10.5 percent last year.

The largest share in the GDP had the trade with 11,7 percent, agriculture, forestry and fisheries with 8 percent, public administration, defense and compulsory social security by 7.4 percent, real estate with 6.8 percent, accommodation and food with 6.5 percent, and information and communication with 4.5 percent. Compared to the previous year, the highest growth in the share in GDP had electricity production by 38 percent, ie from 2.8 to 4.1 percent share. Agriculture, forestry and fishing grew by 16 percent, and administrative and support service activities by 14.5 percent.

According to an international survey, regarding growth rate, only three countries in Europe had a larger increase in their GDP than Montenegro – Latvia and Turkey with the 4.1 percent and Romania with 3.5 percent. Two other countries had the same growth as Montenegro – Lithuania and Iceland with 3.3 percent.  As for neighboring States, the highest growth recorded Serbia with 2.5 percent, followed by FYR Macedonia with 2.2 percent. Croatia and Slovenia had a negative growth rate of -0.9 and -1.1 percent respectively.

The average growth in the EU was only 0.1 percent, whilr in the eurozone countries was also negative and it amounted to -0.4 percent. The biggest decline in the EU had Cyprus with -5.4 percent and Greece with -3.9 percent.

National Statistical Office of Montenegro published figures on the GDP for the first two quarters of this year. According to these data, the real economic growth for the entire first half was 0.9 percent, ie in the first quarter growth was 1.5 and in the second only 0.3 percent. Montenegro’s economy, according to World Bank projections, this year will grow by 3.2 percent, and the problem will continue to be a high level of public and external debt, which should be tackled with fiscal consolidation. Data on economic growth in the region is slightly worse, since the World Bank estimates that the economies of Southeast Europe will grow an average of 1.9% this year and 2.6% the following one. Part of this growth is the result of the beginning of the highway construction.