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Montenegro fiscal guidelines project economic growth amid living standard concerns
The Montenegrin government has adopted macroeconomic and fiscal policy guidelines for the 2026–2029 period, projecting economic growth of approximately 3.1% to 3.2% and a nominal GDP increase of around €1.3 billion. State Secretary Tarik Turković noted that cumulative gross wages are expected to rise by over 19% during this period, while cumulative inflation is projected to be slightly above 10%. Additionally, unemployment is forecasted to drop from 9.8% to approximately 8%.
However, the projections have drawn criticism from political figures and labor unions. Miloš Konatar, a member of the URA Presidency, warned that the government's data suggests a decline in living standards, as price increases may outpace wage growth. Specifically, regarding the public sector, guidelines indicate that gross wages could rise by only 2.5% while cumulative inflation reaches 12.9%, potentially reducing the real value of public sector earnings by 10%.
The Union of Free Trade Unions (USS) and the Administration and Judiciary Union have expressed disappointment with these projections, stating they anticipate a drop in living standards and intend to fight for wage increases that exceed inflation rates.
Entities
Miloš Konatar · Ministry of Finance of Montenegro · Montenegrin Government · Tarik Turković · UREM · Union of Free Trade Unions of Montenegro
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] The government's adoption of macroeconomic and fiscal policy guidelines for 2026-2029 indicates that prices will rise faster than wages. etv.me
- [● 3 SOURCES] An agreement with unions on the General Collective Agreement is necessary to increase wages. etv.me
- [● 3 SOURCES] Pensions should be increased without new budget costs or debt. etv.me
- [● 3 SOURCES] The economy should be supported through subsidies and new credit lines for small and medium enterprises. etv.me
- [● 3 SOURCES] Citizens will have higher nominal wages but will be able to purchase less. etv.me
- [● 3 SOURCES] Prices for basic food items and energy should be limited. etv.me