This report covers the key macroeconomic and financial releases as well as the political events from Montenegro for the period of April 6 - May 5, 2015. In the beginning of May, the European Commission upgraded its 2015 GDP forecast on Montenegro, saying it now anticipates an increase of 3.3%, supported by expectations for investments in several tourist resorts and the construction of a key motorway stretch. At the same time, it raised its 2016 growth forecast to 3.9% from the previous 3.7%. The IMF also raised its GDP growth projection for this year to 4.7% from 3.4, adding that it expects growth to weaken to 3.5% in 2016, and to decelerate to 3.3% in 2020. The report also gives details about the latest developments of the planned Ionian-Adriatic Gas Pipeline (IAP) and presents UAE’s Royal Group plans to build an airport in the Adriatic town of Ulcinj and 10 five-star hotels in Montenegro’s summer resort Ada Bojana. Key points: • Montenegro’s budget deficit contracted 1.7% y/y to €51.6mn in the first quarter of 2015 • Consumer prices accelerated their annual growth to 1.6% in March from 0.6% y/y in February • Industrial output climbed 19.3% y/y in March • Unemployment rate declined to 18% in 2014 from 19.5% a year ago - labour force survey • Bank assets rose 5.7% y/y to €3.14bn at end-March