Montenegro Private Consumption (ann. var. %)

Private Consumption in Montenegro

The economy recorded a broadly stable pace of year-on-year growth in Q4 2022, as faster expansions in government consumption, fixed investment and exports were largely offset by a softer increase in household spending. Data for H1 of this year paints a mixed picture of the economy. In January-April, tourist arrivals were significantly higher than in the same period of 2022. That said, in the same period, imports grew, and exports fell year on year, which translated into a wider trade gap. Meanwhile, in mid-May, the government approved a budget revision that set the target for the fiscal deficit at 3% of GDP. In politics, on 20 May, Jakov Milatovic was sworn in as the new president. Milatovic vowed to accelerate progress toward EU membership. In fact, the EU High Representative for Foreign Policy recently stated that the country is first in line to join the EU.