WIIW The Vienna Institute for International Economic Studies - Wiener Institut für Internationale Wirtschaftsvergleiche

Private consumption flourished in 2022, following a tax reform that resulted in very high GDP growth of 6.1%. Against all the odds, fiscal policy is still expansionary and fiscal risks are thus rising. A further rebound in tourism and expansion of the energy sector will be the main drivers of economic growth in 2023, which is projected to be 2.9%. The recent presidential election witnessed the triumph of the new ‘Europe Now’ party, which will likely win a significant share in the June parliamentary election, too, and could be a game changer in contemporary Montenegrin (geo)politics.