Montenegro
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Concluding Remarks by the Chairperson of the Trade Policy Review Body, H.E. Mr. Eloi Laourou of Benin at the Trade Policy Review of Montenegro, 11 and 13 April 2018
The first Trade Policy Review of Montenegro has offered us a good opportunity to deepen our understanding of recent developments in and challenges to its trade economic and investment policies. Since its accession in 2012 Montenegro’s initiatives to integrate into the multilateral trading system have been greatly appreciated. Indeed the more than 195 advance written questions submitted by 17 Members and the 28 delegations that took the floor during the first day underline the importance attached to Montenegro’s trade and investment policies and practices.
Report by the WTO Secretariat
Since its WTO accession in April 2012 Montenegro’s small and open import-dependent and servicesorientated economy has been on a fluctuating growth path. Action has been taken through fiscal consolidation and reform measures to address several economic challenges. During the review period Montenegro’s annual GDP growth ranged from -2.7% (in 2012) to 3.5% (in 2013); its annual average growth rate for the period 2012-16 stood at 1.8% a slowdown compared to 3.4% over the 2001-11 period. Following a fiscal loosening in 2016 reforms have been under way to spur economic recovery including a Fiscal Consolidation Plan (December 2016) a Fiscal Consolidation Strategy (June 2017) and a 2017-2019 Economic Reform Programme. Developments in Montenegro’s regional and international competitiveness were affected by productivity-related and other challenges some of which are being addressed. Whereas consumer price inflation dropped from a peak of 4.1% in 2012 to 1.5% in 2015 including two years of deflation and averaged 1.4% in the period 2012-2016 the unemployment rate declined progressively but remained relatively high at an average of 18.5%.