Podgorica, (MINA-BUSINESS) – President of the Social Democrats and one of the leaders of the European Alliance Damir Sehovic, the latest report from the International Monetary Fund (IMF) clearly shows that the Government is pursuing a populist and unsustainable economic policy, rather than implementing reforms.

Sehovic said the latest IMF report warned of a rising fiscal deficit, a record foreign trade gap, and inflation nearly twice the eurozone average.

“This clearly confirms that the authorities are pursuing an unsustainable ‘billboard’ economic policy,” Sehovic said.

According to him, the Government’s irresponsible economic policy is leading to higher deficits, increasing public debt, and putting medium-term fiscal stability at risk.

Sehovic noted that the IMF expects that this year’s deficit will exceed the legally permitted level, which is already one of the highest in the Western Balkans.

He added that an even more serious warning is that, without new measures, the deficit could reach over four percent of GDP by the end of the decade, further distancing Montenegro from eurozone membership.