Page 101 - SE Outlook Regions 2022

European Commission has said that, in order to approve funding, a
cost-benefit analysis should be completed first.

The sum for the construction of the second stretch of the motorway,
between Matesevo and Andrijevica, is higher compared to the previous
estimations, made in 2018, that it will cost €273mn.

Meanwhile, the construction sector showed signs of recovery from the
coronacrisis in 2021 with the number of new building permits jumping
88.6% y/y to 66 in the third quarter of 2021, after falling by 30.1% y/y in
the previous quarter, according to the latest available statistics office
data. However, the rise was mainly due to the much lower number of
building permits issued in 2020. It was backed by the higher number of
permits issued to individuals. In quarterly terms, the number of building
permits was almost unchanged in 3Q21.

3.7.6 Major Sectors

The tourism sector, which contributes around one quarter of
Montenegro's GDP, is likely to restore further in 2021.

The government is drafting a plan for the sector and hopes it will go
beyond the pre-crisis level from 2019 in 2022.

The number of tourists and overnight stays has been rising sharpy
since the start of the summer season, reaching around 80% of the
pre-pandemic level. The number of tourists in Montenegro stood at
45,665 in October, nearly four times higher compared to the 12,558
visitors a year earlier, according to the latest available statistics office
data. Most tourists visited seaside resorts in October (77%), followed by
the capital Podgorica (13.7%) and mountain resorts (4.9%).

3.8 Real economy - North Macedonia

3.8.1 Retail

North Macedonia’s retail sales went up by a real 7.2% year on year in
October, slowing down from a 8.7% y/y increase a month before. In
2021 the biggest annual increase of retail sales was recorded in April,
of 23%, following the lockdown in the same month of 2020.

According to media reports, French sporting goods retailer Decathlon is
expected to enter the market in North Macedonia. Decathlon is
scanning the market and selecting locations for stores, which will be
followed by the second phase, which is the construction of facilities. Its

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