Scandal in Montenegro - earnings from drug trafficking and prostitution included in GDP report

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GDP of Montenegro in the second quarter of this year achieved a growth of 3.5 percent, and for the first time, the figure included estimates of earnings from illegal activities, such as drug trafficking and prostitution, Podgorica-based Vijesti is reporting.

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The estimated turnover from those activities for 2024 was 0.1 percent out of the GDP of 7.64 billion euros, which is 7.6 million euros.

In its fiscal strategy, the Government of Montenegro expected a growth of 4.8 percent this year, but later corrected the forecast to 3.5 percent, while the revenue plan for this year was in line with the earlier higher rate of economic growth.

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On Wednesday, Monstat (the statistical office of Montengro) published revised GDP data for the period from 2006 to 2023 in accordance with the ESA 2010 (EU system of accounts) methodology, thereby fulfilling the obligations from Chapter 18 in the process of the country joining the European Union.

The audit for previous years, as well as the calculation of GDP for 2024, included estimates of legal activities that often go unreported, such as private lessons, tips, payments for household services and underreporting of income, but also illegal activities such as drug trafficking and prostitution.

Photo: MARCUS BRANDT / AFP / Profimedia

According to the original plan, the revision was to be carried out in 2026, but by the decision of the Government of Montenegro, the revision started earlier as the activities to close the negotiation Chapter 18 - Statistics got accelerated.

(Telegraf Biznis/Tanjug)