This report covers the main macroeconomic releases from October 1 until October 30, 2016 as well as the financial and political events that took place in Montenegro during this period.
The political parties that will form Montenegro's new ruling coalition are expected to complete negotiations within two days, according to Dusko Markovic, who is the Democratic Party of Socialists' (DPS) candidate for the country's new prime minister. Markovic was nominated after the DPS gained the highest number of votes in the October 16 general election.
Meanwhile political analysts have forecast that Montenegro’s veteran Prime Minister Milo Djukanovic, who has backed off from leading a new government after the October 16 general election, will most likely run for president in 2018.
Serbian special police have found proof that Serbian citizens were planning a coup in Montenegro, Serbia’s Prime Minister Aleksandar Vucic said. He told a press conference that the security services had found proof of planned illegal activities in Montenegro that had been prepared in Serbia.
Montenegro's economy is expected to post the highest growth, of 5.1%, among the countries in Emerging and Developing Europe this year, the International Monetary Fund (IMF) said in the October issue of its World Economic Outlook (WEO). The forecast was revised upwards compared to the 4.7% projected in the April WEO.

Key points:
• CPI deflation softened to 0.1% y/y in September
• The working-day adjusted industrial production increased 4.4% y/y in September
• The foreign trade gap widened by 18.7% y/y to €1.32bn in the first nine months of 2016