The national debt at the end of February amounted to 1,54 billion euros or 45,3 percent of the gross domestic product (GDP), which represents a growth of 4,8 percent compared to January.
The Ministry of Finance announced that the domestic debt reached 431,3 million euros, while the foreign share was 1,1 billion euros.
In the Ministry's publication entitled Monthly Macroeconomic Indicators, it is also stated that the trend of lower revenues and lower expenditures compared to the plan continued in February.
"The new wave of crisis, which is evident in the real sector, as well as extraordinary weather conditions are the main reasons for the drop in income and increase in expenses in the first two months of this year compared to the comparative period last year," the publication states.
Lower incomes
The Ministry announced that the negative effects of the recession in the Eurozone and extraordinary weather events in Montenegro caused a decline in all economic indicators.
"The decline in public revenues in the first two months of this year compared to last year's and planned, as well as the growth of the state's obligations creates the need for a rebalancing of public finances," said the Ministry.
The original budget revenues in February decreased by seven percent on an annual basis, while compared to the planned, they were 13,45 percent lower. Lower revenues, as explained by the Ministry, were achieved on the basis of lower collection of value added tax (VAT) and customs duties, while in the observed period more excises and income taxes were collected.
The original budget revenues in February decreased by seven percent on an annual basis, while compared to the planned, they were 13,45 percent lower.
Current budget expenditures were reduced by 5,1 percent compared to the plan, but also increased by 5,3 percent compared to the same period last year.
The Ministry also announced that inflation rose by 4,2 percent in February, due to higher prices of food, tobacco and electricity. The increase in food prices was caused by the storm, tobacco by an increase in excise duties, and electricity by the application of new tariffs.
They added that the increase in the price of alcoholic beverages and tobacco was most influenced by 24,8 percent, housing, water, electricity, gas and other fuels by 8,5 percent, healthcare by 6,6 percent and transportation by 5,8 percent.
Annual inflation, measured by the harmonized index of consumer prices, amounted to 3,1 percent, with tobacco, fruit, solid fuels, pharmaceutical products and electricity rising in price the most.
The Ministry also announced that inflation increased by 4,2 percent in February, due to higher prices of food, tobacco and electricity.
Investments halved, exports fell by a quarter
Net foreign direct investments in the first two months of this year were 57 percent less than in the same period last year, preliminary data from the Ministry of Finance showed. They said that the foreign trade exchange in the first two months amounted to 257,5 million euros, which is 5,5 percent less than in the comparative period.
"The decrease in total trade is the result of a sharp annual drop in exports of 26,1 percent and a slight increase in imports of 1,5 percent," according to the publication Monthly Macroeconomic Indicators, prepared by the Ministry.
They added that in the first two months, goods worth 51,2 million euros were exported, while imports amounted to 206,3 million. The weaker export is a consequence of the decline in the export of non-ferrous metals, due to social and other pressures in the Podgorica Aluminum Plant (KAP). The coverage of imports by exports amounted to 24,8 percent, which is less than in the same period last year when it amounted to 34 percent.
The Ministry announced that non-ferrous metals accounted for 50,7 percent of total exports, and iron and steel for 7,6 percent. Mineral fuels and lubricants accounted for the largest share of imports at 27,6 percent, oil and its derivatives at 14 percent, and electricity at 12,8 percent.
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