Russians and Ukrainians are positively contributing to strengthening Montenegro’s budget revenue
Ministry of Financesaidthat the growth in private consumption and the results achieved in tourism led to a significant increase in the revenues collected by the state on the basis of VAT, which for the period from January to September were higher by EUR 171.6 million, or 34.8%, compared to the same period in 2021, i.e. EUR 127.7 million, or 23.8%, compared to planned revenues.
Recently, the Ministry of the Interior reported that just overfor temporary or permanent residencein Montenegro has been approved for just over13,500 Russian citizens, whileUkrainiansin the country on the basis of temporary protection or permitted residence number almost
11,100 people.Since the start of the war in Ukraine, as of the end of February, 112,755 Russian citizens and 50,614 Ukrainians applied to stay in Montenegro for up to 90 days.The Ministry of Finance emphasizes that we are witnessing how, despite the crisis caused by the war in Ukraine, Montenegro’s economy is recovering strongly compared to pre-pandemic levels and is experiencing dynamic growth, which in the second quarter of the year amounted to 12.7%, making it officially the highest in Europe. According to them, growth above expectations, along with favorable macroeconomic indicators, is being positively assessed by relevant international organizations, which have revised upward their growth forecasts for Montenegro for the current year.“Besides the significant increase in imports and recorded inflation in this period, there is no doubt that the increase in the number of foreign citizens who obtained residence permits in Montenegro due to the war in Ukraine, through higher private consumption, also contributed to higher revenues. Thus, it is clear that the increase in the influx of foreign citizens caused by the war in Ukraine contributed to positive trends and, according to the Government’s assessment, primarily reflected stronger private consumption and positive results in tourism, trade and related activities, as mentioned, people transferred their capital to our country and are gradually starting private businesses and expressing interest in further investments. Additional benefits can also be expected in the coming period in terms of creating new jobs and increasing revenues across all tax categories,” the ministry said in its response.