This report covers the key macroeconomic and financial releases as well as the political events from Montenegro for the period of October 6-November 5, 2015. The International Monetary Fund (IMF) said that Montenegro’s economy is expected to expand by 4% this year, improving its previous forecast of 3.5%, backed by large foreign-financed capital investment projects that are expected to help the rest of the economy. Clashes erupted at the end of an anti-government demonstration in Podgorica on October 24, as protesters hurled stones and Molotov cocktails at police. Two leaders of the opposition Democratic Front (DF), which is trying to force Prime Minister Milo Djukanovic to stand down, were arrested. Montenegro gained one place to rank 46th in the World Bank's 2016 edition of the Doing Business report. The government and Italy’s A2A have agreed to extend the Italian company’s management contract of the power monopoly EPCG for another five years. The two parties have also agreed on the construction of the second unit at the country's sole thermal power plant TE Pljevlja. Montenegro’s constitutional court said on October 14 the government’s decision to impose additional fee on the retail price of motor fuels is unconstitutional. The construction of the key Bar-Boljare motorway will further worsen Montenegro’s fiscal indicators, according to the World Bank. Key points: • The budget deficit increased more than three times y/y to €245.4mn in the first nine months of 2015 • The number of foreign tourists visiting Montenegro increased by 4% y/y to 215,106 in September • Industrial output declined by 5.1% y/y for the second consecutive month in September • Bank assets rose 12% y/y to €3.49bn at end-September