The International Monetary Fund has expressed a reserved view on Montenegro, saying that a modest economic recovery is expected in 2013 although the outlook for the small South Eastern European country faces constraints, and calling for spending cuts to address borrowing needs reports Sofia Globe.
Montenegro has seen serious economic challenges after the advent of the global financial crisis and has implemented some austerity measures. While not a member of the euro zone or even of the European Union – it began pre-accession negotiations on the economic and monetary policy chapters in January 2013 – it unilaterally uses the euro as its currency.
The country of 650 000, which split from its federation with Serbia in 2006, has a certain political continuity, having returned Milo Djukanovic to head the government once more in the most recent elections in October 2012.