The prices of consumer goods and services in Montenegro are, according to Eurostat data, 55 percent of the average in the European Union. This means that Montenegro, whose GDP is significantly below the European average, is relatively cheaper compared to the EU, except when it comes to clothing prices, which are 102 percent of the EU average. Clothing in Montenegro is the most expensive in the region.
Eurostat has published the comparative price levels of 37 European countries. The group of 37 European countries consists of 28 EU members, three EFTA members (Iceland, Norway and Switzerland), then five countries with the status of candidates for EU membership (Montenegro, Macedonia, Serbia, Albania and Turkey) and Bosnia and Herzegovina, a potential candidate. for EU membership.
The Eurostat report states that clothing is the cheapest in Turkey - 54 percent of the EU average, followed by Bulgaria (80 percent of the EU average), Macedonia 81 percent, Hungary 84 percent, Great Britain 87 percent, and the most expensive in Sweden (134 percent). When it comes to clothes, the Czech Republic, Spain, Portugal, Slovenia, Malta, as well as the countries of the region (Albania, Serbia, BiH, Macedonia) are cheaper than Montenegro.
In Montenegro, the prices of audiovisual, photographic and data processing equipment are close to the European average (97 percent). Motor vehicle prices are at 84 percent of the European average, food and non-alcoholic beverages at 79 percent, alcoholic beverages and tobacco at 63 percent.
Eurostat announced last week that the gross domestic product (GDP) per inhabitant according to the standard of purchasing power in Montenegro last year was 46 percent of the EU average. Among the EU member states, the highest GDP per inhabitant according to the purchasing power standard was recorded in Luxembourg, whose level is more than two and a half times higher than the EU average.
The GDP of Montenegro last year was around 4,2 billion euros or 6.634 euros per inhabitant. According to Monstat's preliminary data, the real GDP growth rate in the first quarter of this year was 4,5 percent.
In the consulting firm Fidelity Consulting, they believe that until the wage growth rate does not follow the GDP growth rate, we cannot talk about the overall dynamic growth of the economy.
Fidelity announced on its Facebook page that from 2013 to 2017, wages grew by six percent, GDP by 26 percent, and GDP per capita by 23 percent. "This clearly shows that the growth rate of the gross domestic product should not be taken as a parameter for the improvement of the everyday life of an ordinary Montenegrin citizen", according to Fidelity.
The Eurostat report, published by Monstat, stated that in 2017, price levels for consumer goods and services varied significantly among European countries. Consumer prices in Denmark are 42 percent above the average of the 28 member states, while the cheapest EU member is Bulgaria, whose consumer prices are 52 percent below the EU average.
The price level of consumer goods and services in Croatia is 67 percent, in BiH and Albania 52 percent, in Serbia 51 percent, and in Macedonia 47 percent of the European average.
"The presented results are based on research conducted as part of the Purchasing Power Parity (PPP) project, which collects prices for more than 2.400 consumer goods and services in 37 European countries. The PKM project is being implemented under the leadership of Eurostat and OECD," explained Monstat.
The results of the research are expressed through the "price level index" which enables the comparison of price levels between countries in relation to the EU average. If the price level index is greater than 100, the country is considered relatively more expensive compared to the EU average, and if the price level index is less than 100, the country is considered relatively cheaper compared to the EU average.
The most expensive food in Denmark
Eurostat data show that food is the most expensive in Denmark, and the cheapest in Poland and Romania. Prices ranged from 62 percent of the EU average in Romania and 65 percent in Poland, to 150 percent of the average in Denmark, followed by Sweden (126 percent), Austria (125 percent), Luxembourg (123 percent), Finland (118 percent), Ireland (117 percent) and Belgium, France and Italy (112 percent).
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