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Republic of Montenegro: 2007 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Republic of Montenegro
Author:
International Monetary Fund
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Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2008: Issue 048
Language:
English
Publication Date:
04 Feb 2008
DOI:
https://doi.org/10.5089/9781451826708.002
ISBN:
9781451826708
ISSN:
1934-7685
Pages:
62
Keywords:
ISCR; CR; foreign direct investment; authority; Montenegrin authorities; outturn; policy; credit growth; retail price inflation; staff appraisal; FDI inflow; Credit; Tourism; Public sector; Fiscal stance; Global; Baltics
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The economic expansion in Montenegro is proceeding at full strength. The economy is overheating. Rapid credit growth is overstretching banks, and has contributed to ballooning asset prices. Eroding competitiveness is a concern. Management of the boom falls on fiscal policy. Tax cuts have been procyclical and potentially destabilizing. Fiscal risks need to be contained. The main focus of credit policy should be to strengthen banking sector supervision. Completing the transition to a market economy should be kept at the top of the policy agenda.
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Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund