1. Market Research
  2. > Financial Services
  3. > Banking Market Trends
  4. > Montenegro Country Report - October, 2015

Montenegro Country Report - October, 2015

  • November 2015
  • -
  • Emerging Markets Direct Media Holdings
  • -
  • 24 pages

This report covers the key macroeconomic and financial releases as well as the political events from Montenegro for the period of October 6-November 5, 2015.

The International Monetary Fund (IMF) said that Montenegro's economy is expected to expand by 4% this year, improving its previous forecast of 3.5%, backed by large foreign-financed capital investment projects that are expected to help the rest of the economy.

Clashes erupted at the end of an anti-government demonstration in Podgorica on October 24, as protesters hurled stones and Molotov cocktails at police. Two leaders of the opposition Democratic Front (DF), which is trying to force Prime Minister Milo Djukanovic to stand down, were arrested.

Montenegro gained one place to rank 46th in the World Bank's 2016 edition of the Doing Business report.

The government and Italy's A2A have agreed to extend the Italian company's management contract of the power monopoly EPCG for another five years. The two parties have also agreed on the construction of the second unit at the country's sole thermal power plant TE Pljevlja.

Montenegro's constitutional court said on October 14 the government's decision to impose additional fee on the retail price of motor fuels is unconstitutional.

The construction of the key Bar-Boljare motorway will further worsen Montenegro's fiscal indicators, according to the World Bank.



Key points:



o The budget deficit increased more than three times y/y to EUR245.4mn in the first nine months of 2015

o The number of foreign tourists visiting Montenegro increased by 4% y/y to 215,106 in September

o Industrial output declined by 5.1% y/y for the second consecutive month in September

o Bank assets rose 12% y/y to EUR3.49bn at end-September

Table Of Contents

Montenegro Country Report - October, 2015
EXECUTIVE SUMMARY3

REAL SECTOR4

1.GDP, Inflation4

IMF lifts Montenegro's 2015 GDP growth forecast to 4%, strong rise to continue in mid-term4

Economy to grow by 4% in 2015 - c-bank vice-governor5

PPI inflation flattens y/y in September6

HICP inflation speeds to 2.3% y/y in September6

CPI inflation slows to 1.7% y/y in September7

2.Industry and Trade8

Industrial output drop deepens to 5.1% y/y in September8

Industrial sales decline 2.5% y/y in September8

3.Labour Market9

Monthly average net wage ticks up 0.2% y/y in September9

Unemployment rate rises to 14.67% in early October - employment agency9

4.Tourism9

Foreign tourist arrivals to Montenegro rise 4% y/y in September9

Tourism to contribute 30% to Montenegro's GDP by 202410

Tourism revenue at EUR750mn by early October10

FISCAL SECTOR11

January-September budget gap more than triples y/y to EUR245.4mn on high spending11

Montenegro should aim for up to 1% structural deficit in 2016 budget - c-bank12

FINANCIAL INTERMEDIATION14

Bank assets growth speeds to 12% y/y in September14

Bank deposits growth improves further to 15.7% y/y in September14

Average lending interest rate falls to 9.63% in September15

Mandatory reserves of Montenegrin banks rise 6.4% ytd to EUR228.8mn at end-July15

NPL ratio rise to 15.5% in July - c-bank16

Azmont Investments plans to set up bank in Montenegro16

Six Montenegrin banks suspected of failing to comply with money laundering law16

Combined net profit of Montenegro's banks plunges 68.8% y/y in Jan-Sept17

Banks' liquidity jump 29.7% y/y in July - c-bank18

EXTERNAL SECTOR18

Montenegro's 9-month trade gap widens 6.4% y/y18

Montenegro's 8-mo net FDI inflow jumps 2.3 times y/y19

STRUCTURAL REFORMS AND CORPORATE NEWS20

Montenegro needs EUR1bn to meet EU standards for environment protection20

Montenegro advances by 1 place to 46th in World Bank's 2016 Doing Business ranking20

China's CRBS to launch construction of three tunnels on Montenegro's key motorway - report21

Montenegro, A2A agree on construction of second unit at TE Pljevlja - economy minister21

Montenegro, A2A agree on new 5-year management contract for EPCG - economy minister22

Montenegro's constitutional court says fee on fuels illegal23

World Bank to adopt new CPF for Montenegro for 2016-2020 in H1 201623

Italy's A2A likely to continue managing Montenegro's EPCG - Deputy PM Lazovic24

Construction of Bar-Boljare motorway to worsen Montenegro's fiscal parametres - World Bank24

POLITICS25

Thousands demand PM's resignation in Montenegro25

Six policemen injured at opposition protests in Montenegro27

View This Report »

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 24 Million searchable statistics with tables, figures & datasets
  • More than 10,000 trusted sources
24/7 Customer Support

Talk to Veronica

+1 718 514 2762

Purchase Reports From Reputable Market Research Publishers
China Banking IT Solutions Market Shares, 2015: Market Maintains Stable Growth

China Banking IT Solutions Market Shares, 2015: Market Maintains Stable Growth

  • $ 7500
  • Industry report
  • October 2016
  • by IDC

"China's banking industry is facing three major challenges -- economic slowdown, interest rate liberalization reform, and internet finance, accompanied by dramatic changes in the banking business environment," ...

Blockchain Technology Market by Provider, Application, Organization Size, Vertical, and Region - Global Forecast to 2021

Blockchain Technology Market by Provider, Application, Organization Size, Vertical, and Region - Global Forecast to 2021

  • $ 5650
  • Industry report
  • October 2016
  • by MarketsandMarkets

“Need for transparency and immutability is driving the growth of the blockchain technology market” MarketsandMarkets estimates the global blockchain technology market to grow from USD 210.2 million ...

China Banking Industry IT Solutions Forecast, 2016-2020

China Banking Industry IT Solutions Forecast, 2016-2020

  • $ 5500
  • Industry report
  • September 2016
  • by IDC

"China's banking industry is facing three major challenges -- economic slowdown, interest rate liberalization reform, and internet finance, accompanied by dramatic changes in the banking business environment. ...

Uk Wealth Report 2016

September 2016 $ 4995

ref:plp2015

Reportlinker.com © Copyright 2016. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.