Montenegro is an upper-middle-income country with enormous growth potential. Montenegro became a member of the World Bank Group in 2007. Montenegro’s economy has huge potential, but is hindered by significant structural, economic, and fiscal risks.
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Over the past decade, Montenegro has achieved important results: it tripled its per capita income and reduced poverty to single digits. It is an upper middle-income country, and with a per-capit... Show More +a income of $7,100, it is the richest among the six countries of the Western Balkans.The World Bank’s Country Economic Memorandum suggests areas where Montenegro needs further reforms in order to prepare the ground for future prosperity.The report, entitled “Preparing for Prosperity,” argues that Montenegro should be a fiscally strong state with low, sustainable debt, fiscal surpluses, and public investments that are well targeted. Additionally, Montenegro needs to improve financial discipline in the economy, the report says. Show Less -
Such negative trends can be reversed, the report says, through the recommended improvements to Montenegro’s overall connectivity through more diversified exports, better infrastructure, and modern ski... Show More +lls, as well as through increased flexibility in terms of implementing a flexible agenda that reduces bureaucracy and improves the investment climate, especially at the municipal level.“It is very important to reduce red tape, reduce a bureaucratic approach, and to improve the business climate. In that sense, we cooperate with the World Bank and the Doing Business team, and we improved in that scale,” says Milorad Katnic, Advisor for Economy and Finance to Montenegro’s Prime Minister.The report, backed by policy advisors, says such a reduction of bureaucracy – combined with improved labor market regulations – will benefit Montenegro in terms of growth, jobs, and standards of living in the years to come. Show Less -