wiiw Forecast Reports

MONTENEGRO: Tourism decline drives major slump in economic growth

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Bernd Christoph Ströhm

in: No Quick Recovery in Sight, with Coronavirus Risks Looming Large
wiiw Forecast Report No. Autumn 2020, November 2020 , pp. 89-91

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The COVID-19 pandemic is exacting a heavy toll on the Montenegrin economy, largely because of the country’s reliance on its tourism sector: arrivals were 77.9% down in the first eight months of the year. This has had serious repercussions for employment, and foreign direct investment has also declined. Alongside Croatia, Montenegro is one of those countries in CESEE that will be hardest hit by COVID-19, with GDP contracting by 9% in 2020. In 2021, we expect a partial recovery in tourism, supporting overall growth of 5%.

 

Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database

Countries covered: Montenegro


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