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15/10/2024

The Central Bank of Montenegro Council adopted the 2024 Q2 Macroeconomic Report which indicates expectations of a more moderate year-over-year economic growth in the current year. Data for the first six months of 2024 point to positive trends in transport, trade and construction sectors, but also a decline in industrial production. Positive trends were seen in the labour market with a significant increase in employment and a decline in unemployment.

Banking business data show that the banking sector operations were safe and stable with high liquidity and solvency parameters recorded in the first six months of the current year. The capital adequacy ratio stood at 19.5%, with banks continuing their stable business.

Consumer prices in Montenegro were 4.8% higher on average compared to the same six-month period in 2023, while in June this year prices, we saw a price uptrend of 4.1% compared to the same month of the previous year. This was stated in the 2024 Q2 Inflation Report that was also adopted at the Council meeting. The model estimate of inflation for December 2024 forecasts inflation ranging from 2.2% to 5.1%, with the central projection at 3.5%. The CBCG expert assessment is similar to the model and indicates that this year`s inflation can be expected in the range from 2% to 4%, with the central projection at 3%.

The Council also adopted the results of 2024 Q2 Bank Lending Survey. Banks assessed that the credit conditions for the economy and households were eased in the second quarter of the current year, as seen from lower loan interest margins. Credit conditions for the household sector have been significantly eased, which was the result of a joint campaign of the CBCG and banks aimed at creating more favourable conditions for household borrowing. Also, the surveyed banks pointed out that there was a decline in commissions and fees and the extension of maturity and grace periods, as well as the easing of requirements regarding collateral, mortgage value and down payments and deposits. Banks also indicated that they expect a further decline in interest margins.

The Council also passed a decision on issuing approval to the payment institution "PrestoPay" DOO Podgorica for the provision of payment services.