Mugoša: International institutions confirm what I was pointing out, that genuine reforms are necessary

The head of the Social Democrats parliamentary group and representative of the European Union, Boris Mugoša, commented on the news that the European Bank for Reconstruction and Development (EBRD) has lowered this year's growth forecast for the Montenegrin economy to 2,6 percent, saying that international institutions confirm what he pointed out.

"In March, I warned the Prime Minister at the Prime Minister's Office precisely about the issue of the projected low growth rates of the Montenegrin economy, insufficient for essential development and sustainability. International institutions confirm what I pointed out in their latest forecasts. After GDP had the lowest growth (around three percent) last year in the last eight years (the exception being Corona 2020), the EBRD is lowering the growth forecast for the Montenegrin economy for this year to as much as 2,6 percent," Mugoša wrote on X.

What is particularly worrying, "apart from the low and insufficient growth rate," as he said, is that when drafting the budget (financial indicators) for 2025, the Government used a GDP growth projection of 4,8 percent for this year.

"After the low estimates of the growth of the Montenegrin economy by the World Bank and the EBRD, these are very indicative data, which once again point to the necessity of implementing genuine structural reforms, diversifying the economy and improving its competitiveness. Insisting on an economic logic based on administrative growth in consumption, without substantial rationalization of unproductive expenditures, and huge borrowing does not lead to the stability and sustainability of the financial system. I would like to remind you that last year saw the lowest import-export coverage in the last 15 years, only 15,1 percent, and the largest foreign trade deficit in the last 15 years, around 3,5 billion euros, and that data from the beginning of this year show even worse trends," Mugoša said.