Montenegro’s President Jakov Milatović opened the conference “Why Are We Delaying? What Next?”, presenting an in-depth review of the country’s economic situation based on three independent analyses initiated by his economic team.
Milatović emphasized that Montenegro has great potential but is currently stagnating. Economic growth slowed to 3% in 2024 and further dropped to 2.5% in Q1 2025—the lowest quarterly growth in a decade outside the pandemic year. Inflation has been rising since September 2024, reaching 4.5% in May 2025, more than double the Eurozone average. This inflation is deeply felt by citizens struggling with high living costs, rising rents, and stagnant wages, hindering youth independence.
The trade balance is worsening, with imports rising 8% and exports falling 0.5% in Q1 2025. Export coverage of imports fell from 17.7% in 2023 to a historic low of 15% in 2024, signaling money leaving the country and lost development opportunities.
Foreign direct investment has declined significantly, from 20% of GDP to 7–8%, mostly focused on real estate rather than productive sectors. Milatović called for a strategic shift toward investments that create real economic value, particularly in production.
Proposed measures include establishing a Credit Guarantee Fund, increasing the agricultural budget, subsidies for small businesses, and a package of 10 anti-inflation measures. Milatović stressed the need for Montenegro to produce, export, and build a system that serves its citizens.
State-owned enterprises, employing nearly 15,000 people and generating €1.2 billion in revenue in 2024, show declining profitability and inefficiency, especially in energy, tourism, and transport. Milatović urged these enterprises to be professional, transparent, and responsible, warning that poor management burdens citizens with higher costs and lost investments.
The tourism sector, vital to Montenegro’s economy, declined by 3.1% in revenue in 2024 and 6.4% in Q1 2025, with overnight stays down 10%. Milatović highlighted the need for strategic planning and accountability to end tourism’s seasonal volatility.
Addressing social inequality, he noted Montenegro has the second highest wealth disparity in the region, where the richest 10% hold 11 times the wealth of the poorest 50%. He called for a society of equal opportunities where honest work guarantees a dignified life.
The conference concluded with a call for urgent, concrete economic reforms focused on real progress without delay or empty promises.
