This report covers the key macroeconomic and financial releases as well as the political events from Montenegro for the period of June 6 - July 5, 2015. The World Bank said in its June edition of Global Economic Prospects that Montenegro’s GDP is expected to grow by 3.4% in 2015, quickening from an estimated 1.5% rise in 2014. The forecast remained unchanged from January’s edition of the report. The country’s economic growth is forecast to cool to 2.9% in both 2016 and 2017. At the same time, Montenegro’s government is targeting an average real economic growth of 3.6% per year in 2015-2018, backed by strong investment cycle, mainly by the construction of the first priority section of the Bar-Boljare motorway from Smokovac to Matesevo. The European Union (EU) opened on Monday, June 22, two new chapters in Montenegro’s negotiations – on financial services (chapter 9) and on trans-European networks (chapter 21). The foreign ministers of Montenegro, Croatia, Bosnia and Albania have signed a joint statement to fully support the construction of the Ionian-Adriatic Gas Pipeline (IAP). Key points: • The budget deficit increased by 32.7% y/y to €96.8mn in January-May • The number of foreign tourists visiting Montenegro increased by 6.4% y/y in May • Industrial output remained unchanged y/y in May • Unemployment rate declined to 18.1% in the first quarter of 2015 - labour force survey • Bank assets rose 8.2% y/y to €3.22bn at end-May