Montenegro overview

Share this page:

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

Montenegro's policy response to the coronavirus crisis

The EBRD is monitoring Montenegro's policy response to the coronavirus pandemic. Our biweekly publication identifies the major channels of disruption as well as selected impact and response indicators.

Learn more

Current EBRD forecast for Montenegro’s Real GDP Growth in 2020 -8.0%

Current EBRD forecast for Montenegro’s Real GDP Growth in 2021 10.5%

GDP growth slowed to 3.5 per cent in 2019, from 5.1 per cent in 2018. The deceleration was primarily due to large investment
projects approaching completion (the Bar- Boljare highway) or being completed (power link to Italy). Last year was also marked by a fall in industrial production, on the back of declines in electricity production and manufacturing sector output. On the other hand, the tourism sector has continued to perform well and the 2019 season was the strongest on record.
Looking ahead, however, the economy is likely to suffer severely from the coronavirus outbreak, because of the expected impact on the tourist season, as tourists from the main origin countries may not be able to travel (around 80 per cent of tourist stays are normally between June and September). In early May 2020, S&P revised the outlook on the sovereign rating from stable to negative, keeping the rating unchanged.
Under the assumption that half of the 2020 tourism season is affected, we expect GDP to fall by 8.0 per cent in 2020, recovering strongly, by 10.5 per cent, in 2021.

Montenegro in the EBRD’s 2019-20 Transition Report


Share this page: