CORONAVIRUS CRISIS pushes a fifth of Montenegro to the EDGE OF POVERTY
An economic decline of 12.4 percent will put Montenegro in the first place in the Western Balkan region, according to the World Bank’s forecasts based on a drastic reduction in tourism turnover.
Based on that estimate, they announced that the number of poor people will also increase, thus 20.4 percent of citizens will be on the absolute threshold. This means that, according to their methodology, a citizen will have five and a half dollars at his disposal for daily consumption.
The report states that the public debt will be around 90 percent of GDP, the highest so far, which requires, as it was estimated, firm management in the coming period.
„If the epidemic is brought under control by the summer next year, economic growth can be expected, but the most important thing is for Montenegro to stay on the reform path and firmly maintain the debt reduction trend, maintain macroeconomic stability and enable a strong and sustainable recovery,“ according to the World Bank’s report.
The coronavirus pandemic has left a strong mark on the labor market, so according to official data, 9,500 people have lost their jobs in Montenegro. Others estimate that there are 15,000 of them.