This report covers the key macroeconomic and financial releases as well as the political events from Montenegro for the period of December 6, 2014 - January 5, 2015. Montenegro’s GDP expanded by a real 1.3% y/y in the third quarter of 2014, speeding up from 0.3% y/y growth in the previous three months, according to preliminary statistics office data. The country’s consumer prices remained flat y/y in November after falling by 0.5% y/y in October due to a 1% annual increase of food prices. Montenegro has signed three agreements with Germany’s development bank KfW for loans worth combined €40mn to be used for investments in energy efficiency. The country also signed a financial agreement with the European Union that would allow the country get €5.6mn for human resources development projects under the EU’s Instrument for Pre-Accession Assistance (IPA II). Key points: • Jan-Nov budget gap narrows 78.4% y/y to €25.34mn. • Foreign tourist arrivals to Montenegro increase 12% y/y in November. • Industrial output falls 19.8% y/y in November. • Average lending interest rates in Montenegro fall to 9.9% in November.