Informal economy still seen as the main barrier

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foto: MINA

Podgorica, (MINA-BUSINESS) – President of the Chamber of Commerce (PKCG) Vlastimir Golubovic has said that the informal economy remains the main obstacle to the improvement of competitiveness of Montenegro’s economy, adding that a synergy of activities carried out by the business and public sector can improve the situation in this field.

“The informal economy remains the largest obstacle to improvement and development of the national economy. As much as the Government is trying to regulate the economic activities, there are always some segments in which a number of transactions are made in the so-called gray area,” Golubovic said at a meeting Prime Minister Dusko Markovic had with Montenegrin entrepreneurs.

He argued that lower labour costs and higher minimum wages could affect the scope of informal economy in the labour market, adding that the business sector would like to see an increase in minimum wages, in combination with the reduction of contributions burdening both employers and workers.

According to him, an analysis of economic situation in 2018, prepared by the PKCG, shows that the country has macroeconomic stability and consolidated public finance, while the stability of its financial sector has been strengthened.

The document says that Montenegro should continue to resolve structural issues in the economic sector and eliminate barriers to the improvement of competitiveness in order to reach the targeted economic growth rate.

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