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Montenegro continues to face economic challenges as the economy remained flat in the third quarter (Q3) of 2012, recording preliminary 0% growth in year-on-year (y/y) terms, IHS Global Insight says. According to data published by the country's statistical office, Monstat, this follows a 2.4% y/y decline in Q1 of 2012 and 0.3% growth in the second quarter.
"Although rebound from the 2009 recession has been quite modest with economic growth of 2.5% in 2010 and 3.2% in 2011 conditions deteriorated in 2012. Montenegro has been affected dramatically by the ongoing Eurozone crisis, and both industrial output and exports have been hit hard. The Eurozone economy is likely to be stagnant overall in 2013, and recovery will develop only slowly thereafter. This will mainly affect demand for Montenegro's exports. Tourism continues to play an important part in the Montenegrin economy; however, an increase there may not be sufficient to offset decline in other sectors. IHS Global Insight estimates that Montenegro's economy contracted by 0.3% in 2012. We are projecting a return to modest growth in 2013, thanks partly to low base effects," IHS says.
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