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 2018 4.9%

Current EBRD forecast for Montenegro’s Real GDP Growth in 2019 2.8%

Growth in 2018 surprised on the upside. The economy expanded by close to 5 per cent, on the back of the highway construction, some flagship real estate projects at the coast, an exceptionally strong tourist season and a further rise in private consumption. Intense investment activity and consequently higher imports caused the current account deficit to widen to over 17 per cent of GDP. At the same time, net FDI declined to 7 per cent of GDP (from 11 per cent a year before), partly because of the government’s repurchase of the shares of the power utility company. Gradual fiscal consolidation has started to yield results.

Montenegro in the EBRD’s 2018-19 Transition Report