Montenegro overview


In Montenegro we focus on:

  • Making the economy more competitive, integrated and green.
  • Using sustainable tourism as a lever for SME development and investment in related industries – such as agribusiness and sustainable municipal infrastructure – are the focal points in the document.
  • Working with the private sector to help it become more competitive including developing agribusiness value chains and backward linkages in the tourism sector. Connectivity and regional integration will be improved by expanding cross-border transport and energy links, in line with the Connectivity Agenda for the Western Balkans. And the green economy in Montenegro – which marks 25 years since proclaiming itself a “green state” – will be supported via sustainable tourism among other things.
  • Leveraging the country’s comparative advantages to develop agribusiness value chains, providing both investment and advice, to help Montenegro produce more local food for the tourism industry and decrease imports. Tourism – which is the main export product and growth driver in the country – is a big focus of the strategy which lists the following areas of potential EBRD engagement: “Upgrading the existing hotels stock through privatisation, addressing the seasonality issue by promoting development of congress tourism and health tourism facilities, and modernisation of related municipal and environmental infrastructure.

The EBRD’s latest Montenegro strategy was adopted on 3 May 2017

Current EBRD forecast for Montenegro’s Real GDP Growth in 2017 3.7%

Current EBRD forecast for Montenegro’s Real GDP Growth in 2018 3.3%

In Montenegro, after a somewhat disappointing growth rate of 2.9 per cent in 2016, the economy has accelerated in the first half of 2017, with an estimated rate of growth of 4.2 per cent year-on-year. This was mainly due to robust private consumption growth, helped to some extent by rising government consumption, while both investment and net exports had negative contributions to growth. Leading indicators, such as foreign tourist arrivals (up 20 per cent year-on-year in the third quarter of 2017) point to continued robust growth since mid-year. We are therefore increasing our forecast for GDP growth in 2017 to 3.7 per cent, while keeping our 2018 forecast at 3.3 per cent. Downside risks include a possible adverse impact of the rapidly rising public debt, which may necessitate painful austerity measures in future to keep it under control.

Montenegro in the EBRD’s 2017-18 Transition Report