PODGORICA, Montenegro, Dec 26 (Reuters) - Montenegro could seek aid from the International Monetary Fund if the lender's forecast of a sharp economic slowdown in 2009 comes true, Finance Minister Igor Luksic said on Friday.
Earlier this month, the IMF said it expected Montenegro's economy to grow 2 percent in 2009 and 2010 -- far below the rate of recent years.
"In the case of such a scenario, we will need (to make) adjustments because that will jeopardise our public finances in the medium term," Luksic said, adding that the IMF forecast was conservative.
"If that happens, Montenegro will have to ask for an arrangement with the IMF to overcome the crisis," he told parliament during a 2009 budget debate.
He said lower growth rates could result in a fiscal gap, estimated at 1.84 percent of GDP in 2008.
The former Yugoslav republic of 650,000 people ended its loose union with Serbia in 2006. It has since enjoyed strong growth, mainly driven by tourism, and has grown heavily reliant on external financing.
However, the government was confident the economy would perform better and the cabinet of Prime Minister Milo Djukanovic based its 2009 budget on an expected 5 percent GDP growth.
A best-case scenario sees growth at 7 percent and at 2.5 percent in the worst-case scenario, Luksic said.
The government plans a balanced 2009 budget, which includes 230 million euros worth of investments in infrastructure to bolster economic activity and avoid job losses. (Reporting by Dusko Mihailovic, Editing by Gordana Filipovic and Dan Grebler)