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Montenegro

DAMJANOVIC ON THE GOVERNMENT CHALLENGES 10. 01. 2020.   >>  16:32 0

DAMJANOVIC ON THE GOVERNMENT CHALLENGES

When GDP grows, so do wages

The Government's challenge this year will be to link the growth of the gross domestic product (GDP) with an increase in wages, or pensions, considering the fact that the standard of living in the country is still stagnant, independent MP Aleksandar Damjanovic believes.

He told the Mina-business agency that earnings growth is low, while there is no de facto increase in pensions.

"All this is lagging behind GDP growth, which is not good, because it is the citizens who need to feel the quality and consequences of economic growth, but they do not feel it," Damjanovic said.

According to him, the challenge for this and every other government is to link the growth of economic performance, or GDP, with the growth of wages and pensions.

He believes that the biggest challenge is to reconcile the economic flows that are beyond public finances.

"I am talking about private finances, that is, capital that is in the accounts of banks, which is still not in function of economic growth with the problem we have in public finances, or insufficient funds for various needs, which concern not only capital but also financing of the current budget." , Damjanovic said.

He said that the challenges are to see more substantive reforms in the economic sense, more of the the rule of law, more compliance with contracts, court procedures, as well as reforms in terms of the tax system, which creates a growing social gap.

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