Montenegro’s economy continued to grow in the previous year, although at a slower pace. Moving forward, emphasis should be placed on improving the business environment and diversifying the economy, according to Nina Drakić, president of the Chamber of Commerce (PKCG).
Key recommendations include enhancing the business climate, diversifying the economy, particularly in the tourism sector, and increasing the capacity for renewable energy production. While international organizations predict moderate growth for Montenegro in the upcoming year, challenges persist. Growth projections for GDP range from 3 to 4 percent, with the European Commission more optimistic at 4.2%, and the Ministry of Finance forecasting 4.8%.
However, Drakić highlighted factors limiting optimism, such as a weaker tourism season and a planned VAT increase for tourism services, which could negatively impact the sector and other parts of the economy. She also noted continued risks to public finances due to wage increases, pension adjustments, and reduced pension contributions, which are expected to strain the budget.
Despite challenges, personal consumption grew by 8.3% and investments in fixed assets rose by 10%. However, Montenegro’s foreign trade deficit was 2.9 billion EUR, driven by reduced exports of electricity and aluminum. Drakić also mentioned that tourism, the economy’s largest driver, showed disappointing results, with a 4% decline in tourism revenue.
External factors, such as global geopolitical, health, and climate-related issues, significantly impact Montenegro’s import-dependent and service-oriented economy. She emphasized the need for a strategic approach to economic diversification and the development of new sectors like organic production, renewable energy, and smart services.
Drakić also called for stronger communication between the government and the private sector, especially in the law-making process. For 2025, the Chamber of Commerce plans to focus on improving business conditions, supporting green transition, and facilitating the digital transformation of small and medium enterprises, along with promoting foreign investment.
