This report covers the key macroeconomic and financial releases as well as the political events from Montenegro for the period of October 6, 2014 - November 5, 2014. Montenegro's economy is expected to grow by 2.3% in 2014, the IMF said in the October issue of its World Economic Outlook (WEO), revising down its previous estimate of 2.8% made in April. The World Bank also cut its growth projection for Montenegro's economy. It now sees the country’s GDP expanding by 2.2%, which compares to a previous estimate of 3.2% growth. The Montenegrin government and China Exim Bank signed on October 30 the EUR 689mn credit contract for the financing and construction of the first priority section of the major Bar-Boljare motorway project. The IMF recommended authorities to prepare contingency measures that limit borrowing for the construction of the motorway as the project's financing could significantly push up the country's public debt level. Key points: • Nine-month budget gap narrows 82% y/y to EUR 23.3mn • Tourism revenue up 2.2% to EUR 643mn in Jan-Aug • Industrial output rebounds in Sept posting 7.5% y/y growth • Unemployment rate falls to 18.5% in Q2 - labour force survey • Bank loans declined 3.7% y/y to EUR 2.44bn at end-September