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Montenegro Montenegro

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Montenegro – Quick View
ECR score37.97 (Mar 2011)
ECR rank105 (Mar 2011)
GDP 2010USD 4.0 billion
GNI per capita PPPUSD 12,491
FDI inflowUSD 749.22 million
Inflation Q3 20100.3%
Central bank assetsUSD 3,889,554,480
Unemployment rate 201020%
Government deficitUSD 0.27 billion
Tax revenueUSD 650.29 million
Government typeRepublic
Recent political crisisNA
Economic freedom score76th
Freedom of information score104th
Corruption perception index69th
Birth rate12 per ‘000
Population balanceUnder 14 - 19.37%
Population balanceAbove 60 – 17.20%
Life expectancy yearsMale 71.6 years
Life expectancy yearsFemale 76.5 years
Mortality rate10 per ‘000
Literacy rate96.4%
Internet access44.1%

[Top] Economic Overview

Montenegro and Serbia were part of the Federal Republic of Yugoslavia. Montenegro declared its independence from its union with Serbia and Montenegro in 2006.

Montenegro’s economy is now expanding and the focus has mainly been on attracting foreign investment. The main industries include aluminium production and the financial services sector, which are the main contributors to the economy.

(Source: economywatch)


Gross domestic product (GDP)

Montenegro’s GDP in 2010 was EUR 3.03 billion compared to EUR 2.98 billion in 2009. The GDP in 2011 is projected to be EUR 3.17 billion.


Montenegro GDP and GDP growth

( e- estimated

The GDP growth in 2010 was 0.5% compared to -5.7% in 2009.

Montenegro’s GDP at constant prices was EUR 2.91 billion in 2009 compared to EUR 2.86 billion in 2008. (

Gross national income (GNI)

The nation’s GNI per capita at PPP in 2010 amounted to USD 12,491 compared to USD 10,361 in 2005.

(Source: UNDP)


Tax rates

The tax rate on individual income in Montenegro is 9%. Resident individuals are taxed on the basis of their worldwide income, while non-residents are taxed on income earned in Montenegro.



Corporate tax

Standard corporate tax in Montenegro is 9%.


Tax contribution

Total tax rate (% profit)

Pension insurance


Corporate income tax


Health insurance


Payroll tax


Fuel tax


Unemployment insurance


Property tax


Environmental tax


Name disclosure tax




Inflation rate

The inflation rate in Montenegro declined in the first quarter of 2009. The inflation rate in Q3 2010 was 0.3% compared to 1.7% in the corresponding period in 2009.


Montenegro Inflation rate


Foreign direct investment (FDI)

FDI inflow in 2010 amounted to EUR 564.4 million compared to EUR 1,099.4 million in 2009.

Montenegro FDI net inflows




Portfolio investment

The net portfolio investment in 2010 amounted to EUR 188.21 million.

Montenegro Portfolio investment net



Banking sector assets

The table below displays the assets of the banks in Montenegro.


Balance Sheet – Assets of banks in Montenegro (EUR thousands)


December 2010

December 2009

Currency and deposits with depository institutions












Factoring and forfeiting



Custody services



Other assets



Provisions for assets other than loans



Total Assets




[Top] Financial Indicators & Government Financial

Consumer price index (CPI)

The CPI in February 2011 was 101 compared to 100.1 in February 2010.

Montenegro CPI



Interest rates on saving deposits/time deposits


Weighted Average Deposit Interest Rates (%)


Weighted average deposit nominal interest rates

December 2010


December 2009


December 2008


December 2007




Government expenditure

Government expenditure in 2010 was EUR 1.44 billion compared to EUR 1.4 billion in 2009.

Montenegro Government expenditure

(Source: IMF)

Public debt

Public Debt (till June 2010 )


Net value (EUR million)

% of GDP

Total public debt



Domestic public debt



Foreign public debt



Government debt with the debt of public companies





Official exchange rate


Montenegro Exchange rate



Government finances

Fiscal balance

The fiscal deficit in 2010 was EUR 0.21 billion compared to EUR 0.13 billion in 2009.

Montenegro Fiscal balance


(Source: IMF)

Total revenue

The total revenue of Montenegro was EUR 1.23 billion in 2010, whereas it was EUR 1.27 billion in 2009.

Montenegro Total revenue

(Source: IMF)

Tax revenue

Tax revenue in Montenegro until September 2010 was amounted at EUR 504.2 million.


Current account balance – surplus/deficit

Montenegro has had a current account deficit since 2008 and the deficit is projected to be carried forward into 2011. The current account deficit in 2011 is projected to be 12.2% of GDP whereas the deficit in 2010 was 17% of GDP.


Montenegro Current account balance


( p- projected

Balance of payments

Balance of Payments (EUR thousands)






Current Account




















Current transfers





Capital and Financial Account





Net Errors and Omissions






[Top] Labour Force and Employment Overview

The labour force in Montenegro in the third quarter of 2010 was 262,400; which included 148,800 men and 113,600 women. (Source:

The labour force participation rate for men and women in 2008 was 65.9% and 50.4% respectively. (Source: UN)

The unemployment rate in Montenegro was estimated to be 20% in 2010 and 2011; however unemployment in 2009 was 19.1%.


Montenegro Unemployment rate


Minimum wage

The average salary was EUR 768 in December 2010. Minimum wage limits in Montenegro in all sectors was EUR 463 in 2009 compared to EUR 416 in 2008.


Level of unionisation

The Confederation of Trade Unions of Montenegro (SSSCG) is one of the main trade unions in Montenegro. A new trade union was registered in November 2008, known as Union of Free Trade Unions of Montenegro (UFTUM).

(Source:, USSCG)

[Top] Political Stability

Montenegro has a republican system of government. The powers are divided into three branches -

·         Executive Branch - includes president and  prime minister

·         Legislative Branch - includes parliament

·         Judicial Branch - includes Supreme Court and Constitutional Court

The president is the head of state and the prime minister is the head of government. The parliament, known as the Skupstina, consists of 81 members who are elected for a term of four years.  

The current president Filip Vujanovic of the Democratic Party of Socialists (DPS) won the presidency in April 2008 and is the first president of Montenegro.

The main political parties in Montenegro are:

·         Albanian Alternative (AA)

·         Democratic Party of Socialists (DPS)

·         Social Democratic Party (SDP)

·         Socialist People's Party (SNP)

·         People's Socialist Party (NSS)

·         People's Party (NS)

·         Democratic Serb Party (DSS)

·         Croatian Civic Initiative (HGI)


Regulatory environment in Montenegro

Montenegro Economic Freedom Indices


Montenegro’s economic freedom score is 62.5, making its economy the 76th freest in the 2011 Index of Economic Freedom. Montenegro ranks 34th out of 43 countries in the Europe region.

Corruption perception

The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide. Montenegro is ranked 69th on this list indicating moderate levels of corruption in the public departments.

Montenegro has maintained its CPI rankings since 2009 – it was ranked in same position with a score of 3.9 compared to 3.7 in 2010, indicating the perceived levels of corruption have stayed the same in Montenegro.


Freedom of information

The freedom of the press is guaranteed in Montenegro. However, there have been issues relating to political influence over editorial policies.

(Source: BBC)

Montenegro ranked 104th in the World Press Freedom Index 2010 with a score of 28.5, indicating the media in Montenegro is not restricted. (Source:


the main newspapers in Montenegro include:

·         Vijesti

·         Pobjeda 

·         Dan

·         Republika

·         Monitor

(Source: BBC)

Judicial system

The judiciary is under the supervision of the Ministry of Justice. The various courts in Montenegro are:

·         Supreme Court

·         Administrative Court

·         Court of Appeal

·         Commercial court

·         Superior court

·         Basic court

The Supreme Court is the highest court in Montenegro and is based in Podgorica. It has the power to decide on the rulings of the lower courts. The Administrative Court adjudicates in cases of administrative disputes. The Court of Appeal has the responsibility of deciding appeals against the first instance rulings of the higher courts and also against rulings of the Commercial Courts. Commercial courts adjudicate in matters between domestic and foreign companies, individuals and entrepreneurs, and other matters related to commercial activities.


[Top] Demographic Overview

The total population of Montenegro in 2009 was 630,142; of which the male population was 310,465 and female population was 319,677.


The gender ratio in Montenegro is not balanced i.e. there are approximately 96.7 men for every 100 women.

(Source: UN)

Montenegro Population by gender

In 2009, the number of people in Montenegro below the age of 14  accounted for 19.37% of the total population and individuals above 60 accounted for 17.2% of the population.

Montenegro’s crude birth rate in 2008 was 12 (per 1,000 people) and the crude death rate was 10 (per 1,000 people)

(Source: World Bank, World Bank)

The infant mortality rate was 8.7 (per 1,000 live births) between 2005 and 2010.

The life expectancy between 2005 and 2010 was 71.6 years for men and 76.5 years for women.

The international migrant stock until mid-2010 wa 42,500 people or 6.8% of the total population.

Montenegro’s urban population growth rate between 2005 and 2010 was -0.8% and the rural population growth rate was 0.6%.

(Source: UN)

The main ethnic groups in Montenegro include Montenegrin, Serbian, Bosniak, Albanian, Muslims and others.

The main religious groups include Orthodox Christian, Muslim, Roman Catholic, and others.


Montenegro ranked 49th out of 169 countries on the Human Development Index 2010 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and having a decent standard of living (measured by purchasing power parity, PPP, income).

(Source: UNDP)

[Top] Soft Infrastructure

Literacy rate

Montenegro’s total adult literacy rate in 2010 was 96.4%. The gross enrolment ratio in education for both sexes in 2010 was 74.5%.

(Source: UNDP)

Education resource

The Ministry of Education and Science is responsible for education. The education system in Montenegro includes:

·         Preschool education- It consist of nursery school and kindergartens for children. The government run all preschool education and provide funds to them.

·         Primary education- Primary education in Montenegro is free for all. There are approximately 161 primary schools in Montenegro with approximately 77,000 pupils.

·         Secondary vocational education

·         Tertiary Education

·         Adult Education

Primary education is compulsory and free in Montenegro.


Health care

The Ministry of Health, Labor and Social Welfare (MHLSW) is responsible for development of the health care sector in Montenegro. The MHLSW has an important role in providing funds and helps in creating a centralised structure for the management of the health care system.

The health care system in Montenegro is based on the Bismarck model for social health insurance, which generates funding through payroll deductions. Health insurance is mandatory for everyone in Montenegro and the Health Insurance Fund is responsible for compulsory health insurance.

The health facilities in Montenegro include primary health centres, general hospitals and special hospitals.

The public expenditure on health is approximately 5.1% of GDP.

(Source: WHO,

[Top] Hard Infrastructure

The main form of public transport is through road travel (mainly buses and cabs).

Ports:  Port of Bar is the main sea port in Montenegro. (Source:world port source)




Airport name

Runway length (ft)







(Source: Aircraft charter world)


Telecommunications networks

The total number of fixed telephone lines registered in 2009 was 171,749 compared to 174,046 in 2008, a 1.31% decline over the previous year. Montenegro had 27.51 fixed telephone lines per 100 inhabitants in 2009.

Montenegro had 1,294,167 mobile phone subscribers in 2009 compared to 1,158,032 in 2008, an increase of 11.75% in mobile subscriptions over the previous year. The mobile subscriptions per 100 inhabitants was 207.33 in 2009.


The number of internet users in Montenegro was 294,000 in 2010 compared to 50,000 in 2006. In 2010, 44.1% of the total population used internet services.


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