PODGORICA (Montenegro), May 10 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Tuesday it expects Montenegro's gross domestic product (GDP) to grow by 3.7% in 2022, affirming its forecast made in March.
In 2023, Montenegro's economy is expected to expand by 4.5%, up from a 4.0% growth forecast made in March, the EBRD said in the May edition of its Regional Economic Update.
However, "important downside risks to the outlook remain, including the current political uncertainty and the possibility of disruptions to the tourism season," the EBRD noted.
The EBRD expects the economic growth of the Western Balkan region to slow to 3.2% in 2022 from 7.5% last year, before accelerating to 3.6% in 2023.
"Projections are subject to major downside risks should hostilities escalate or should exports of gas or other commodities from Russia become more restricted," the EBRD explained.
Montenegro's economy is estimated to have grown by 12.4% in 2021, after shrinking by 15.3% in 2020.