Gross domestic product (GDP) of Montenegro grew in the first quarter of this year compared to the same period last year by 6,1 percent, mainly due to increased household consumption, the Statistical Office said yesterday Monstate.
GDP for these three months amounted to 1,22 billion euros, while in the same period last year it was worth 1,03 billion. GDP had a nominal growth of 18,2 percent, and excluding the impact of inflation, real growth was 6,1 percent.
Household consumption, as part of GDP, was €1,09 billion this quarter and was €207 million or 23 percent higher than the same period last year. This refers to the general traffic made by citizens, whether they are citizens of Montenegro, tourists or foreigners with temporary residence (permit).
This increase in consumption was influenced by an increase in wages and other incomes of citizens, an increase in the number of tourists and their consumption, as well as an increase in the number of foreigners with residence permits, especially from Ukraine and Russia.
GDP also includes government consumption, which increased from 232 million to 259 million, or 11,6 percent, over these comparative periods. Government spending on public projects grew at the level of inflationary impact, so they did not affect real growth.
Gross fixed investment in the economy rose from €253 million to €286 million, representing an increase of 13 percent and only a fraction of a percent higher than the inflationary impact.
The item that, for Montenegrin circumstances, almost always has a negative impact on GDP is the balance between imports and exports of goods and services. This balance was in the red for these three months by 430 million euros, while in the same period last year the loss amounted to 334 million euros. So the negative effect of this item has increased by 28 percent.
Exports of goods and services amounted to $666 million and increased by $178 million, while imports increased by $273 million to $1,09 billion. The reasons for the growth of this negative impact are the increase in the import of general consumption goods, such as food by 30 percent, cars by 74 percent, drinks and tobacco products by 57 percent, oil products by 18 percent, clothing by 38 percent, shoes by 67 percent.
Since the export of goods and services also includes the consumption of foreign tourists, this balance will be positive only during the third quarter (July, August, September), when it is a good tourist year.
The Minister of Economic Development and Tourism, Goran Đurović, wrote yesterday on his Twitter account that the growth of "an incredible 6,1 percent is an indicator of the work of the Montenegrin government and proof that this country is on the right track."
Recall that earlier the International Monetary Fund (IMF) improved forecast on the economy of Montenegro. According to his forecasts, the country's economy should have strengthened by 9% in 2021.
Montenegro is in second place in terms of GDP growth
Yesterday, Monstat also published a table from Eurostat, according to which Montenegro ranks second in terms of GDP growth, and Iceland is in first place with a growth of 7,1 percent.
Eurostat maintains these data for 27 member countries, as well as seven candidate countries and other European countries that have adapted their statistics to its standards.
Iceland and Montenegro are followed by Spain with 4,1% growth, Turkey with four percent, Cyprus with 3,4%, Malta with 3,1%, Norway with three, Croatia and Denmark with 2,8% each. The average growth in EU member states was 1,1 percent.
As many as eight countries had negative growth, that is, an economic downturn in this quarter. These are Estonia with a minus of 3,2 percent, Lithuania with 2,5 percent, Hungary with 0,9 percent, Germany and Ireland with a minus of 0,2 percent, as well as Poland, the Czech Republic and Finland, which had an economic decline of 0,1 percent. .
Of the countries in the region, after Montenegro, Croatia posted the highest growth at 2,8 percent, followed by North Macedonia at 2,1 percent and Slovenia and Serbia at 0,7 percent each. Bosnia and Herzegovina, Albania and Kosovo are not included in the Eurostat lists.
