Podgorica, (MINA-BUSINESS) – The economic situation in Montenegro is complex and requires a serious response, as it is the result of the absence of a clear development policy, Montenegrin President Jakov Milatovic said, adding that the country needs a clear development strategy and genuine reforms.

In an interview with the Mina-business agency, he said that rising prices are directly affecting living standards, the purchasing power of wages and pensions is declining due to inflation, domestic production remains far below real capacity, and economic activity has slowed.

“This is not only the result of global economic trends, but also a consequence of the lack of a clear development policy,” Milatovic said when asked to comment on the current economic situation in Montenegro.

According to him, when he assumed responsibility for Montenegro’s economic development in December 2020, the focus was on recovery and strengthening the economy, as well as creating a predictable environment for investment and the development of the real sector.

“We reversed an economic decline of 15 percent in 2020 into the highest economic growth of 13 percent in 2021 and seven percent in 2022. In addition, we launched the greatest economic reforms in Montenegro’s history. We supported domestic entrepreneurs, strengthened agricultural production, revived the tourism sector after the impact of the COVID pandemic, and established development funds and credit lines for projects that generate new jobs and boost production,” Milatovic recalled.

In his view, that experience shows that economic development requires a clear plan, structural reforms, and a state that knows where it is going, rather than ad hoc interventions and a lack of direction.

He noted that last year Montenegro recorded its lowest growth in the post-pandemic period, alongside a decline in tourism and a further drop in the export-to-import ratio.

“That is why we do not need another series of improvisations and ad hoc solutions, but a clear development strategy and genuine reforms that will bring new value to citizens,” Milatovic said, adding that it is time for a new phase of development based on production, knowledge, and investments that create long-term value.