Podgorica, (MINA-BUSINESS) – According to Member of Parliament Nikola Milovic of the Democratic Party of Socialists (DPS), Montenegro is facing the alarming consequences of an unsustainable model of economic policy, instead of the promised development and stability.

“The International Monetary Fund (IMF) has confirmed our warnings – without reforms, we face years of stagnation,” Milovic posted on X.

He said that inflation and living costs are rising, adding that the economy is overheated without a real basis in productivity, while economic growth is declining and development potential has stalled, with citizens and businesses taking on more debt, an increase in companies with frozen accounts, and growing illiquidity.

“There is also an evident and disastrous trade deficit that undermines the country’s competitiveness, rising taxes, particularly in tourism, which directly deters visitors and weakens a key economic sector. At the same time, foreign direct investments are declining as investors leave, employment is based on party affiliation while institutions of, productivity is falling across all sectors, and tourism revenues and overnight stays are shrinking, despite the strategic importance of tourism for the economy,” he stated.

Milovic also warned that public finances are in a downward spiral, threatening the complete collapse of Montenegro’s economy.