Montenegro's public debt will grow faster than the economy in the next 3 years
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Montenegro's public debt will grow faster than the economy in the next 3 years
2 months ago
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In the next three years, the net public debt of Montenegro will increase nominally from the current 4.2 to 5.5 billion euros, but also in relation to the gross domestic product (GDP) from the current 57.6 to 62.88 percent of the GDP at the end of 2027, according to the public debt projection 2024-2027, published with the budget proposal for the following year.

The data also show that in each year of this period, the net public debt will grow significantly faster than the economy of Montenegro.

At the end of next year, the government plans a net public debt of 4.7 billion euros, which is 10.2 percent more than at the end of this year, while the nominal GDP will increase by 7.4 percent.

In 2026, net public debt will increase by 8.8 percent to 5.12 billion euros and nominal GDP by 5.1 percent. This negative trend will continue in 2027, when net public debt will increase by 7.4 percent and nominal GDP by 4.6 percent.

The nominal growth of the GDP is the increase in the measure of its estimated value without the influence of inflation, while the real growth is of a lower value. According to the Government's fiscal strategy, GDP will reach a real growth of 4.8 percent next year, 3.1 percent in 2026 and 3.2 percent in 2027.

The net public debt of Montenegro at the end of December 2023 was EUR 3,97 billion - 58,04% of GDP, while the net public debt at the end of December 2020 was EUR 3,53 billion. The Ministry of Finance announced the approval of the medium-term debt management strategy until the end of this year.

According to the data of this government department, in 2026, about 353 million euros must be provided for the repayment of the debt, which mostly refers to the regular repayment of the loan to Exim Bank from 2014, the payment of the domestic bond from 2019 to amounting to EUR 50 million, regular repayment of World Bank loans from 2018 and 2020 and Deutsche Bank from the year 2023.

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