Montenegro’s industrial output rose 31.6% year on year in the third quarter, according to reported figures, led by a 170.9% increase in electricity, gas, steam and air-conditioning supply and a 95.8% rise in mining and quarrying. Manufacturing expanded just 0.6%. The contrast shows that the rebound relied on utilities and mining, while manufacturing barely advanced.
On a quarterly basis, total industrial output fell 2.1% from the second quarter. Manufacturing contracted 7.9%, while mining output rose 13.2% and electricity-related output gained 5.9%. The figures underline the importance of power generation and extractive operations to Montenegro’s industrial performance.
Higher electricity production can generate export revenue, reduce the need for imported energy and support businesses that depend on reliable supply. But year-on-year growth from a weak base does not by itself show a lasting increase in productive capacity. Mining output can also vary with activity at individual sites, contracts and operating schedules.
Manufacturing remains a weak link for an economy seeking to replace imported goods, attract industrial investors and create higher-value export jobs. Higher utility output alone cannot provide the breadth of industrial supply chains policymakers are seeking.
Industrial companies’ investment needs include productive equipment, dependable electricity, skills, access to working capital and export logistics. Foreign investment data indicate that property attracts substantially more capital than domestic companies and banks, reinforcing the need to direct investment towards productive operations.
The longer-term significance of the recovery depends on whether manufacturing can turn its marginal growth into sustained expansion.
