Moody’s credit rating agency has affirmed the B1 credit rating for Montenegro, while retaining “positive” outlook. The credit rating is the result of high GDP per capita, optimistic prospects for EU accession, and a strong investment trend with a focus on foreign direct investment. The latest Moody’s report welcomes significant investment projects implemented in the transport, tourism and energy sectors.

Furthermore, B1 credit rating justifies the strong middle-term growth potential, supported by the implementation of adequate structural reforms, as well as the implementation of the Government’s effective measures that contribute to strengthening Montenegro’s fiscal position. In addition, specific Government activities have been identified that have reduced the medium-term refinancing risks in Montenegro, as described by Moodys.

The main drivers of growth are evident in the construction, transport, tourism and energy sectors. The growth was also stimulated by public investment, above all, by the construction of the priority section of the Bar-Boljare motorway. On the other hand, a significant contribution to the growth was also made by household consumption, fueled by a record-breaking tourist season and positive developments in the labor market, where in the second quarter of 2019 the unemployment rate was at a historically low level of 14.3%.

The report states that 2019 will be another record-breaking year in the tourism sector, in line with an increase in arrivals for the period January – August of 17.2% and overnight stays of 9.2%, compared to the same period last year.

Finally, the report praises the legal and administrative reforms that are being implemented, especially in the context of accession to the European Union, which is a further impetus for the advancement of the rule of law while continuing to strengthen the capacities of the institutions in the coming years.