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EBRD Transition Report for 2023-2024

At the invitation of the EBRD, representatives of UBCG attended the presentation of the Transition Report for 2023-2024. The key priorities for Montenegro this year should be systemic measures that will support medium-term fiscal sustainability, strengthening the business sector in order to attract investments and a greater green transition.

EBRD Regional Economist Peter Tabak stated that the steps for convergence of smaller countries with European ones are better management (administrative reform), increased openness and green transition. He pointed out that Montenegro has low labor productivity compared to the European Union (EU), whose level has hardly changed since 2001, and not a little since 2009.

He explained that the difference in the standard of living in Montenegro compared to the EU is still large. In addition, the trade openness of the entire Balkans remains below the level of CEFTA members while convergence is progressing, but slowly.

He added that the gross domestic product (GDP) per capita in Montenegro is half the level of the southern member states of the European Union (EU), while compared to more advanced countries, it is at the level of a third. He pointed out that last year’s growth of the Montenegrin economy was mostly due to the tourist season. The Report also states that satisfaction with life in Montenegro has increased to 55 percent, but that the same number of citizens are concerned about environmental degradation and climate change.