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Dr Jadranka Kaluđerović, Director of the Institute for Strategic Studies and Prognoses (ISSP), has scrutinized Montenegro's Draft Economic Reform Program (ERP) for 2024-2026. Key points include a planned 3.2% economic growth, emphasis on fiscal discipline, and ambitious goals like reducing the deficit to below three percent of GDP.
Kaluđerović stressed the necessity of fiscal restraint, rationalizing public administration, and boosting private sector competitiveness for sustainable growth. While acknowledging aligned growth rates with World Bank projections, she underscored the importance of investing in human capital and productivity for long-term success.
Expressing caution, she raised concerns about ERP's reliance on increased tax revenues to cover expenditure hikes, especially amid global economic uncertainties. Kaluđerović emphasized the potential risks of introducing new taxes or raising rates, expressing hope for sustainable fiscal policies without burdening Montenegrin companies.
Addressing inflation trends, she noted projections of around five percent in the coming year, gradually decreasing to an average of three percent by 2026. These trends, though slightly higher than EU levels, align with general inflationary expectations.
In navigating economic reforms, Dr Kaluđerović's insights underscore the importance of fiscal responsibility, private sector development, and the challenges of achieving long-term economic sustainability.
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