Montenegro’s GDP increased by a real 12.7% y/y in the second quarter of 2022, after expanding by 7.2% y/y in the previous quarter (chart), according to preliminary data from the statistics office released on September 21.
Montenegro’s economy is recovering after in 2020 it was the worst affected in Southeast Europe and across the emerging Europe region by the coronavirus (COVID-19) pandemic due to the collapse of its tourism sector, which typically contributes 25% of GDP.
However, the projections are that the economy will expand by just around 3.7% in 2022 due to the Russian war in Ukraine, which will affect the tourism sector again.
The nominal GDP growth was 22.7% y/y in the second quarter, versus the 17.3% y/y hike in Q1.
Measured at current prices, Montenegro's total economic output stood at €1.4bn, higher than the €1.03bn reading in Q1. The statistics office did not provide a sector breakdown.
At current prices, household consumption stood at €1.11bn. The gross fixed capital formation totalled €345.9mn in the second quarter, while the net export/import was negative -€500.84mn.
The statistics office also said that Montenegro’s economy expanded by a real 13% in 2021, reversing the 15.3% contraction in 2020.