View source for Economy of Montenegro

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{{Infobox economy
| country = Montenegro
| image = Podgorica_National_bank_of_Montenegro.JPG
| caption = [[Central Bank of Montenegro]]
| currency = [[Euro]] (EUR, €)
| fixed exchange = 
| year = Calendar year
| organs = [[Central European Free Trade Agreement|CEFTA]], [[World Trade Organization|WTO]]
| group = {{plainlist|
*[[Developing country|Developing/Emerging]]<ref>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=2200&sg=All+countries+%2f+Emerging+market+and+developing+economies |title=World Economic Outlook Database, April 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=29 September 2019}}</ref>
*Upper-middle income economy<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=29 September 2019}}</ref>}}
| population = {{increase}} 633,158 (2023)<ref>{{cite web |url=https://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=tps00001&plugin=1 |title=Population on 1 January |publisher=[[Eurostat]] |website=ec.europa.eu/eurostat |access-date=13 July 2020}}</ref>
| gdp = {{plainlist|
*{{increase}} $8.11 billion ([[Gross domestic product|nominal]], 2024 est.)<ref name="IMFWEOME">{{cite web |url=https://www.imf.org/external/datamapper/profile/MNE|title=World Economic Outlook Database|publisher=[[International Monetary Fund]] |website=IMF.org}}</ref>
*{{increase}} $20.18 billion ([[Purchasing power parity|PPP]], 2024 est.)<ref name="2020/01">{{cite web |title=World Economic Outlook Database, April 2020 |url=https://www.imf.org/external/pubs/ft/weo/2020/01/weodata/weorept.aspx?pr.x=40&pr.y=17&sy=2017&ey=2021&scsm=1&ssd=1&sort=country&ds=.&br=1&c=943&s=NGDP_RPCH%2CPPPGDP%2CPCPIPCH&grp=0&a= |website=IMF.org |publisher=International Monetary Fund |access-date=16 April 2020}}</ref>}}
| gdp rank = {{plainlist|
*[[List of countries by GDP (nominal)|158th (nominal, 2023 est.)]]
*[[List of countries by GDP (PPP)|152th (PPP, 2023 est.)]]}}
| growth = {{plainlist|
*{{color|blue|+6.4%}}&nbsp;(2022)<ref name="IMFWEOME"/>
*{{color|blue|+6.0%}}&nbsp;(2023)<ref name="IMFWEOME"/>
*{{color|blue|+3.7%}}&nbsp;(2024)<ref name="IMFWEOME"/>
}}
| per capita = {{plainlist|
*{{increase}} $12,800 (nominal, 2024 est.)<ref name="IMFWEOME"/>
*{{decrease}} $31,860 (PPP, 2024 est.)<ref name="IMFWEOME"/>}}
| per capita rank = {{plainlist|
*[[List of countries by GDP (nominal) per capita|79th (nominal, 2023 est.)]]
*[[List of countries by GDP (PPP) per capita|68th (PPP, 2023 est.)]]}}
| cpi = {{increase}} 46 out of 100 points (2023)<ref name="ti_2023">{{cite web |url=https://www.transparency.org/en/cpi/2023 |date=30 January 2024 |title=Corruption Perceptions Index |website=[[Transparency International]] |access-date=15 July 2024 |archive-date=30 January 2024 |archive-url=https://web.archive.org/web/20240130062042/https://www.transparency.org/en/cpi/2023 |url-status=live }}</ref> ([[Corruption Perceptions Index#Ranking over Time|63th]])
| sectors = {{plainlist|
[[Primary sector of the economy|Agriculture]]: 7.5%
*[[Secondary sector of the economy|Industry]]: 15.9%
*[[Tertiary sector of the economy|Services]]: 76.6% 
*(2016 est.)<ref name="CIAWFMJ"/>}}
| components = 
| inflation = 4.3% (2024 est.)<ref>{{cite web |url=https://www.imf.org/en/Countries/MNE#whatsnew |title=Estimated inflation rate Montenegro |publisher=IMF |access-date=2 March 2024}}</ref>
| poverty = {{plainlist|
*8.6% (2013 est.)<ref name="CIAWFMJ">{{cite web |url=https://www.cia.gov/the-world-factbook/countries/montenegro/ |title=The World Factbook |publisher=[[Central Intelligence Agency]]|website=CIA.gov |access-date=23 January 2019}}</ref>
*{{decreasePositive}} 31.4% at risk of poverty or social exclusion (2022)<ref>{{cite web |title=Persons at risk of poverty or social exclusion by age and sex |url=https://ec.europa.eu/eurostat/databrowser/view/ILC_PEPS01N__custom_5803359/default/line?lang=en |publisher=Eurostat |access-date=2 March 2024}}</ref>
*{{increaseNegative}} 18.1% on less than $5.50/day (2020f)<ref name="Spring2020">{{cite book |title=Europe Central Asia Economic Update, Spring 2020 : Fighting COVID-19 |url=https://openknowledge.worldbank.org/handle/10986/33476 |date=9 April 2020 |publisher=[[World Bank]] |access-date=9 April 2020 |pages=61, 62 |isbn=9781464815645}}</ref>}}
| gini = {{decreasePositive}} 31.5 {{color|darkorange|medium}} (2022, [[Eurostat]])<ref>{{cite web |title=Gini coefficient of equivalised disposable income - EU-SILC survey |url=https://ec.europa.eu/eurostat/databrowser/view/ilc_di12/default/table?lang=en |access-date=2 March 2024}}</ref>
| hdi = {{plainlist|
*{{increase}} 0.832 {{color|darkgreen|very high}} (2021)<ref>{{cite web |url=http://hdr.undp.org/en/indicators/137506 |title=Human Development Index (HDI) |publisher=[[Human Development Report|HDRO (Human Development Report Office)]] [[United Nations Development Programme]] |website=hdr.undp.org |access-date=12 October 2022}}</ref> ([[List of countries by Human Development Index|49th]])
*{{increase}} 0.756 {{color|green|high}} [[List of countries by inequality-adjusted HDI|IHDI (40th)]] (2021)<ref>{{cite web |url=http://hdr.undp.org/en/content/table-3-inequality-adjusted-human-development-index-ihdi |title=Inequality-adjusted Human Development Index (IHDI) |publisher=[[Human Development Report|HDRO (Human Development Report Office)]] [[United Nations Development Programme]] |website=hdr.undp.org |access-date=12 October 2022}}</ref>}}
| labor = {{plainlist|
*{{decrease}} 257,387 (2019)<ref>{{cite web |url=https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?locations=ME&name_desc=false |title=Labor force, total - Montenegro |publisher=[[World Bank]] |website=data.worldbank.org |access-date=27 November 2019}}</ref>
*{{increase}} 59.8% employment rate (2018)<ref>{{cite web |url=https://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=t2020_10&plugin=1 |title=Employment rate by sex, age group 20-64 |publisher=[[Eurostat]] |website=ec.europa.eu/eurostat |access-date=25 May 2019}}</ref>}}
| occupations = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 7.9%
*[[Secondary sector of the economy|industry]]: 17.1%
*[[Tertiary sector of the economy|services]]: 75% 
*(2017 est.)<ref name="CIAWFMJ"/>}}
| unemployment = {{plainlist|
*{{decreasePositive}} 16.1% (2017 est.)<ref name="CIAWFMJ"/>
*{{decreasePositive}} 30.7% youth unemployment (2018)<ref>{{cite web |url=https://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=yth_empl_100&lang=en |title=Youth unemployment rate by sex, age (15-24) and country of birth |publisher=[[Eurostat]] |website=appsso.eurostat.ec.europa.eu |access-date=26 December 2019}}</ref>}}
| average gross salary = [[List of European countries by average wage|€995 / $1053]] monthly (August, 2023)
| average net salary = [[List of European countries by average wage|€799 / $845]] monthly (August, 2023)
| industries = [[steelmaking]], [[aluminum]], [[Food processing|agricultural processing]], [[consumer goods]], [[tourism]]
| exports = {{increase}} $2.502 billion (2021 est.)<ref>{{cite web |url=https://www.cia.gov/the-world-factbook/countries/montenegro/#economy |title=Montenegrin exports |publisher=CIA |access-date=2 March 2024}}</ref>
| export-goods = Copper ore, aluminum, electricity, dried legumes, packaged medicines, lead, scrap iron, lumber
| export-partners = {{plainlist|
*{{flag|Serbia}} 15.7%
*{{flag|Spain}} 11.3%
*{{flag|Pakistan}} 9.4% 
*{{flag|Switzerland}} 7.6%
*{{flag|South Korea}} 5.7%
*{{flag|Bosnia and Herzegovina}} 4.8%
*{{flag|Germany}} 4.7%
*{{flag|Italy}} 4.1%
*{{flag|Russia}} 3.9%
*{{flag|Turkey}} 3.7% (2021)<ref name="OECexport">{{cite web |title=Export partners of Montenegro |url=https://oec.world/en/visualize/tree_map/hs92/export/mne/show/all/2021/ |publisher=[[The Observatory of Economic Complexity]] |access-date= 14 April 2023}}</ref>}}
| imports = {{increase}} $3.637 billion (2021 est.)<ref>{{cite web |url=https://www.cia.gov/the-world-factbook/countries/montenegro/#economy |title=Montenegrin imports |publisher=CIA |access-date=2 March 2024}}</ref>
| import-goods = Refined petroleum, cars, packaged medicines, recreational boats, cigarettes
| import-partners = {{plainlist|
*{{flag|Serbia}} 25.7%
*{{flag|Greece}} 9.5%
*{{flag|Croatia}} 7.4%
*{{flag|China}} 7.1% 
*{{flag|Bosnia and Herzegovina}} 6.2%
*{{flag|Italy}} 4.9%
*{{flag|Germany}} 4.3%
*{{flag|Turkey}} 3.3%
*{{flag|Slovenia}} 3.01%
*{{flag|Hungary}} 1.8% (2021)<ref name="OECimport">{{cite web |title=Import partners of Montenegro |url=https://oec.world/en/visualize/tree_map/hs92/import/mne/show/all/2021/ |publisher=[[The Observatory of Economic Complexity]] |access-date=14 April 2023}}</ref>}}
| current account = {{decreasePositive}} −$540.073 million (2021 est.)<ref>{{cite web |url=https://www.cia.gov/the-world-factbook/countries/montenegro/#economy |title=Montenegrin current account |publisher=CIA |access-date=2 March 2024}}</ref>
| FDI = {{plainlist|
*{{decrease}} $737.7 million (31 December 2017 est.)<ref name="CIAWFMJ"/>
*{{decrease}} Abroad: $39.77 million (31 December 2017 est.)<ref name="CIAWFMJ"/>}}
| gross external debt = {{increaseNegative}} $3.66 billion (2021)<ref name="CIAWFMJ"/>
| debt = {{decreasePositive}} 65.76% of GDP (2023 est.)<ref>{{cite web |url=https://www.statista.com/statistics/528685/national-debt-of-montenegro-in-relation-to-gross-domestic-product-gdp/ |title=Montenegrin national debt to GDP |publisher=Statista |access-date=2 March 2024}}</ref>
| revenue = 1.78 billion (2017 est.)<ref name="CIAWFMJ"/>
| expenses = 2.05 billion (2017 est.)<ref name="CIAWFMJ"/>
| balance = −3.1% (of GDP) (2024 est.):<ref>{{cite web |title= Montenegro budget balance 2024 estimate|publisher=Standard & Poor's |date=1 March 2024|url=https://disclosure.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3133500 |access-date=2 March 2024}}</ref>
| aid = 
| credit = {{plainlist|
*[[Standard & Poor's]]:<ref>{{cite web |title= Montenegro rating 2024 |publisher=Standard & Poor's |date=1 March 2024|url=https://disclosure.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3133500 |access-date=2 March 2024}}</ref>
*B (Domestic)
*B (Foreign)
*AAA (T&C Assessment)
*Outlook: Positive
*[[Moody's]]:<ref>{{cite web |title= Country credit opinion 2023 |publisher=Moody's |date=12 September 2023|url=https://www.moodys.com/research/Government-of-Montenegro-B1-stable-Regular-update-Credit-Opinion--PBC_1378903 |access-date=2 March 2024}}</ref>
*B1
*Outlook: Stable}}
| reserves = {{gain}} $1.982 billion (31 December 2021 est.)<ref>{{cite web |url=https://www.cia.gov/the-world-factbook/countries/montenegro/#economy |title=Reserves of foreign exchange and gold |publisher=CIA |access-date=2 March 2024}}</ref>
| cianame = montenegro
| spelling = 
}}
{{Montenegro topics sidebar}}

The '''economy of Montenegro''' is currently in a process of [[Transition economy|transition]], as it navigates the impacts of the [[Yugoslav Wars]], the decline of industry following the dissolution of the [[Yugoslavia]], and [[economic sanctions]] imposed by the [[United Nations]]. [[Montenegro]] joined the [[World Trade Organization]] on 29 April 2012.<ref name="memberlist">{{cite web|url=http://wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm|title=Members and Observers|publisher=World Trade Organization|date=24 August 2012|access-date=10 September 2011|archive-url=https://web.archive.org/web/20110910105304/http://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm|archive-date=10 September 2011|url-status=live}}</ref> [[Montenegro–NATO relations|Montenegro joined]] the [[North Atlantic Treaty Organization]] on 5 June 2017.<ref name="auto">{{cite web |url=http://www.independent.mk//articles/43533/Montenegro+to+Formally+Join+NATO+on+June+|title=Montenegro to Formally Join NATO on June 5 – Independent.mk |access-date=6 June 2017}}</ref>

== History ==

As a relatively small principality founded in 1852, [[Montenegro]]'s economy was originally wholly based in agriculture, but it began developing an industrial economy at the turn of the 20th century. Growth was hampered by its small population, lack of raw materials, an underdeveloped transport network, and a comparatively low rate of domestic and international investment.

The first industrial enterprises built in Montenegro were [[Woodworking|wood mills]], an [[oil refinery]], a [[brewery]], [[Salt evaporation pond|salt works]], and electric [[power plants]]. Economic development was interrupted by several wars, including the [[First Balkan War]] (1912–13), [[World War I]] (1914–18), and [[World War II]] (1939–45). Throughout the first half of the 20th century, agriculture continued to dominate Montenegro's economic activity.

===The Yugoslav era===
Montenegro's economy was developed significantly after World War II, as the country was integrated into the [[SFR Yugoslavia|Socialist Federal Republic of Yugoslavia]] and experienced a period of rapid urbanization and industrialization. Its industrial sector included the generation of electricity, [[steel mill|steel]] and [[aluminum]] production, [[coal mining]], [[forestry]] and [[wood processing]], [[textiles]], and tobacco manufacturing, while international trade, shipping, and tourism became increasingly important by the late 1980s.

===Post-Yugoslavia===
Following the dissolution of Yugoslavia in the early 1990s, Montenegro's entire industrial production system effectively collapsed, leading to shortages of many goods and skyrocketing prices for them. Due to its political alliance with Serbia and favourable geographic location, with access to the [[Adriatic Sea]] and a shipping-link to [[Albania]] across [[Lake Skadar]], Montenegro became a hub for smuggling activity during the 1990s. The smuggling of petrol and cigarettes, in particular, became a de facto legalised practice within the country.<ref>{{cite web |title=Cigarette Smugglers Find Safe Harbour in Montenegro, Again |url=https://balkaninsight.com/2019/05/30/cigarette-smugglers-find-safe-harbour-in-montenegro-again/ |date=30 May 2019}}</ref>

===Dissolution of State Union with Serbia===
In 1997, [[Milo Đukanović]] took control of Montenegro's ruling party, the [[Democratic Party of Socialists of Montenegro]], and began severing political ties with [[Serbia]]. He blamed the policies of Serbian President [[Slobodan Milošević]] for the overall decline of the Montenegrin economy. Resurgent inflation led the Montenegrin government to "[[dollarize]]" the economy, adopting the [[German mark]] as its dominant currency.<ref>[[Steve Hanke#Montenegro|Montenegro 1999, Currency Board and Dollarization: ''Crnogorska marka'' by Željko Bogetić and Steve Hanke]]</ref> These economic policies also led to a revision in 2003 of the relationship between the two countries from a federal republic to a much looser political union of [[Serbia and Montenegro]], in which the Montenegrin government assumed responsibility for its own economic policies.

The union did not last and on 21 May 2006, the people of Montenegro voted by [[2006 Montenegrin independence referendum|referendum]] to declare independence from Serbia.<ref>[http://news.bbc.co.uk/1/hi/world/europe/5043462.stm Montenegro declares independence] BBC News, 4 June 2006</ref>

==Current economy==
Following the independence referendum, Montenegro's economy has evolved to highlight its service sector, with a goal of becoming an elite tourist destination, and is [[Accession of Montenegro to the European Union|navigating the process of joining]] the [[European Union]]. Attempts to attract foreign investors for large infrastructure projects are ongoing, as these projects are integral to its development as a tourist destination.

Montenegro experienced a real estate boom in 2006 and 2007, with wealthy [[Russians]], [[United Kingdom|Britons]] and others buying property on the Montenegrin coast. As of 2008, Montenegro received more foreign investment per capita than any other nation in Europe.<ref name="zivkovic17">{{cite journal |doi=10.1515/jcbtp-2017-0008|doi-access=free|title=An Analysis of International Trade of Montenegro Using Statistics on the Operations of Transnational Corporations' Affiliates|year=2017|last1=Živković|first1=Olivera|last2=Bjelić|first2=Predrag|journal=Journal of Central Banking Theory and Practice|volume=6|pages=145–163}}</ref> 

In the first half of 2012, Montenegro exported goods, mostly metals, worth €182.3 million, which was 14.6% less than in the same period of the preceding year. Its major export partners include Croatia, Serbia, Bosnia and Herzegovina, and Hungary. Montenegro's imports in the first half of 2012, mostly food, oil, and electrical energy, were worth €864.9 million, which was 2.6% more than the same period in 2011. Its major import partners include Serbia, Greece, and Bosnia and Herzegovina.<ref>B92, [http://www.b92.net/biz/vesti/region.php?yyyy=2012&mm=07&dd=26&nav_id=629712 Crna Gora najviše uvozi iz Srbije], 26.07.2012</ref>

In 2022, the sector with the highest number of companies registered in Montenegro is Services with 15,496 companies followed by Retail Trade and Wholesale Trade with 11,200 and 6,839 companies respectively.<ref>{{cite web | url=https://www.hithorizons.com/eu/analyses/country-statistics/montenegro | title=Industry Breakdown of Companies in Montenegro | website=HitHorizons}}</ref>

=== Finance ===

The [[Central Bank of Montenegro]] was founded in 2001 and shortly thereafter adopted the [[euro]] as the currency of the country in March 2002.
 
The banking sector of Montenegro has a significant share of foreign capital. Banks in Montenegro provide both retail and corporate banking products under one roof, and most offer non-resident accounts, usually to both natural persons and legal entities.<ref>[https://thebanks.eu/articles/offshore-banking-in-Montenegro Offshore Banking in Montenegro]</ref>

The [[Montenegro Stock Exchange]], founded in 1993, was strengthened in 2011 when it merged to become the sole stock exchange in the country. It is owned by a number of financial institutions.

===Infrastructure===
{{Main|Transport in Montenegro}}
In the [[Late 2000s recession|2007 Great Recession]] the economic growth slowed, as several infrastructure projects, such as the development of [[Velika Plaža]], [[Ada Bojana]], [[Buljarica]], [[Jaz Beach]], and the construction of the [[A-1 motorway (Montenegro)|Bar-Boljare motorway]] and new [[power plant]]s had to be postponed. 

The [[Port of Bar]] is the country's primary communication with the maritime trade. Its terminal is specialized in bulk shipment of bauxite and other ores, grain, wood products, acetic acid and petroleum derivatives. In 2019 its allowable draft was reported as 12.8m and several private storage tanks exist on site, to service trade.<ref name="mfam19">{{cite news |last1=Milonjić |first1=Veljko |title=Montenegro Investment and Business Opportunities |edition=Fourth |url=https://www.flandersinvestmentandtrade.com/export/sites/trade/files/attachments/4th%20Montenegro%20Investment%20and%20Business%20Opportunities%20%28MIBO%29.pdf |publisher=Ministry of Foreign Affairs of Montenegro Directorate General for Economic and Cultural Diplomacy |date=July 2019}}</ref> Ro–Ro traffic from [[Bari]] and [[Ancona]] is handled through an operational quay which is 400m long with water depth of between 4m and 5.9m.<ref name="iatap">{{cite news |title=T.2.1 The Action Plan - PP7 Port of Bar |url=https://newbrain.adrioninterreg.eu/wp-content/uploads/2021/04/PORT-OF-BAR_Action-plan_NEWBRAIN_signed.pdf |publisher=Interreg ADRION |date=30 December 2019}}</ref>

===Industry===
The 2007 recession was difficult for the [[Podgorica Aluminium Plant]], which was initially built in 1969 and was the biggest single contributor to the Montenegrin [[gross domestic product]]. The plant, first sold to [[Oleg Deripaska]]'s [[En+ Group]] in 2005, declared bankruptcy in 2013 and was sold to local magnate [[Veselin Pejovic]]'s [[Uniprom]] in 2014.<ref name="uniprom">{{cite news |title="Uniprom" uplatio 10 mil EUR za imovinu KAP-a |url=https://www.ekapija.com/news/1092522/uniprom-uplatio-10-mil-eur-za-imovinu-kap-a |access-date=14 October 2018 |work=ekapija.com |agency=Tanjug |date=12 March 2015 |language=Montenegrin}}</ref>

===Tourism===
{{main|Tourism in Montenegro}}
With 300km of coastline, backed by mountains, Montenegro is proving to be a desirable holiday destination and generated around 25% of Montenegro's GDP. [[Impact of the COVID-19 pandemic on tourism|Covid restrictions]] in 2020 saw Montenegro suffer a 15% drop in GDP and high unemployment in the tourist sector before rebounding in 2021.<ref>{{cite web |title=Investment Climate Statement |url=https://www.trade.gov/country-commercial-guides/montenegro-investment-climate-statement-ics |date=6 August 2022}}</ref> Montenegro prefers luxurious and upscale projects to attract tourists, encouraging foreign investment to create the facilities.<ref>{{cite web |title=Tourism |url=https://www.trade.gov/country-commercial-guides/montenegro-tourism-0 |date=6 August 2022}}</ref>

===Energy===
{{see also|List of power stations in Montenegro}}
[[Elektroprivreda Crne Gore]] (EPCG) is the mainly state-owned coal and power producer and distributor which owns two large hydroelectric plants and a coal powered thermal power plant.<ref name="balk196">{{cite web |title=Montenegro’s EPCG signs financing deal for Gvozd wind power project |url=https://balkangreenenergynews.com/montenegros-epcg-signs-financing-deal-for-gvozd-wind-power-project/ |date=19 June 2023}}</ref>

Two wind power farms are in operation, Krnovo Wind Farm and Možura Wind Farm which generate a total of 118MW. 

In June 2023 APCG obtained €82m finance to build the Gvozd wind farm which will generate 54.6 MW.<ref name="balk196"/> A new wind farm, the Bijela wind farm is planned with 118MW capacity following UAE based Alcazar Energy acquiring the rights in 2023 to spend $200m building the farm.<ref>{{cite web |title=Alcazar Energy in $200m Montenegro wind farm deal |url=https://www.agbi.com/articles/alcazar-energy-in-200m-montenegro-wind-farm-deal/ |date=12 October 2023}}</ref>

In 2023 Montenegro exported around €200m worth of electricity (2022 €140m) becoming the top export item for the country.<ref>{{cite web |title=Electricity becomes Montenegro’s biggest export item |url=https://balkangreenenergynews.com/electricity-becomes-montenegros-biggest-export-item/ |date=7 December 2023}}</ref>

===Agriculture===
In July 2006 prior to EU integration efforts a survey document was produced by the Ministry of Agriculture, Forestry and Water Management for the EU-funded project ''Agriculture and Rural Development Strategy of Montenegro''.<ref name="seema">{{cite news |title=Montenegro's Agriculture and European Union – Agriculture and Rural Development Strategy |url=https://seerural.org/1documents/Documents/Development_Strategies/Montenegro-National_Strategy_ARD.pdf |agency=Regional Rural Development Standing Working Group in South Eastern Europe |publisher=Government of the Republic of Montenegro |date=26 July 2006}}</ref> The [[Statistical Office of Montenegro]] learned as late as November 2021 how to collect its data in formats acceptable to the [[European Commission]].<ref name="unml">{{cite news |title=Montenegro learns to collect farm data in line with European standards |url=https://montenegro.un.org/en/160909-montenegro-learns-collect-farm-data-line-european-standards |publisher=United Nations in Montenegro |date=26 November 2021}}</ref><ref name="somc">{{cite news |title=Crop production - data |url=http://monstat.org/eng/page.php?id=1464&pageid=62 |publisher=Statistical Office of Montenegro |date= }}</ref>

Since 2010 agricultural trade relations between the EU and Montenegro have been governed by the [[EU-Montenegro Stabilisation and Association Agreement]], and with the exception of beef, sugar and wine all agricultural products originating in Montenegro can enter the EU duty free. The EU has a large agri-food trade surplus with Montenegro, and exports meat, dairy and food preparations. The EU mainly imports vegetables such as mushrooms, wine and oils from Montenegro.<ref name="dgec">{{cite news |title=Enlargement countries |url=https://agriculture.ec.europa.eu/international/agricultural-trade/bilateral-agreements/enlargement-countries_en |access-date=15 August 2022 |agency=European Commission |publisher=Directorate General for Agriculture and Rural Development |date=n.d.}}</ref>

It was reported by the EC [[Directorate-General for Agriculture and Rural Development]] in March 2019 that the share of agriculture in Montenegro's [[GDP]] was 8%. Agricultural land accounts for 38% of the total. Olives and citrus fruits are grown in the coastal region, while seasonal vegetables and tobacco are produced in the central areas. In the north of the country ungulates dominate the farming.<ref name="dgag">{{cite news |access-date=15 August 2022 |title=Agriculture in the enlargement countries |url=https://agriculture.ec.europa.eu/international/international-cooperation/enlargement/candidates_en |agency=European Commission |publisher=Directorate General for Agriculture and Rural Development |date=n.d.}}</ref> The largest share of the land consists of pasture and grassland.<ref name=mifad/>

Montenegro became a member of the [[UN]] [[International Fund for Agricultural Development]] (IFAD) in 2015, which notes that the rural population represents one-third of the total. In 2019 the IFAD focused its activities "on the key challenges of better connectivity and higher productivity by (i) fostering the graduation of micro and small agricultural holdings from the current non-viable subsistence-type agriculture toward semi-commercial and commercial agriculture, through investments in pro-poor rural infrastructure, (ii) promoting the aggregation of smallholders within inclusive value chain clusters and (iii) supporting the proactive role of municipalities to deploy investment to promote inclusion for entire sectors of the rural population."<ref name="mifad">{{cite news |title=Montenegro - Country strategy note |url=https://www.ifad.org/documents/38711624/40089510/Country+Strategy+Note+2020-2021.pdf/e9047c58-9de5-b092-60aa-643dde812960?t=1576680329000 |issue=Report No: 5251-ME |publisher=IFAD |date=7 November 2019}}</ref>

Over the years 2009 to 2019 the [[World Bank]] contributed a development project called the ''Montenegro Institutional Development and Agriculture Strengthening Project'', by which (amongst other highlights) the [[food safety system]] was upgraded in EU compliant manners, a Border Inspection Post with [[veterinary]] and [[phyto-sanitary controls]] was established in the [[Port of Bar]], an electronic farm register was created, procedures for the classification of farm and food  establishments were completed according to EU norms, and the Veterinary Diagnostic Laboratory in [[Podgorica]] was accredited in [[ISO 17025]] analysis methods.<ref name="midas20">{{cite news |title=The MIDAS Touch: Supporting Institutional and Agricultural Development in Montenegro |url=https://www.worldbank.org/en/results/2020/10/11/supporting-institutional-and-agricultural-development-in-montenegro |publisher=The World Bank Group |date=14 August 2020}}</ref>

=== Import/Export statistics ===
{{col-start}}
{{Col-2}}
{| class="wikitable"
|+Imports per year&nbsp;(Source: World Bank) <ref name="worl923">{{Cite web |title=Imports of goods and services (current US$) - Montenegro |url=https://data.worldbank.org/indicator/NE.IMP.GNFS.CD?end=2022&locations=ME&start=2015 |access-date=2023-09-18}}</ref>
!Year
!Imports (Billions in US dollars)
|-
|2018 ||3.68
|-
|2019 ||3.60
|-
|2020 ||2.91
|-
|2021 ||3.65
|-
|2022 ||4.63
|}
{{col-2}}
{| class="wikitable"
|+Exports per year&nbsp;(Source: World Bank) <ref name="worl923"/>
!Year
!Exports (Billions in US dollars)
|-
|2018 ||2.36
|-
|2019 ||2.43
|-
|2020 ||1.24
|-
|2021 ||2.51
|-
|2022 ||3.21
|}
{{col-end}}

== Trade agreements ==
Montenegro has free trade agreements with many countries, but not Russia or Belarus.<ref>{{cite web |title=Trade Agreements |url=https://www.trade.gov/country-commercial-guides/montenegro-trade-agreements |date=6 August 2022}}</ref>
* [[Central European Free Trade Agreement]] signed in 2007 giving free trade between Albania, North Macedonia, Moldova, UNMIK/Kosovo, Croatia, Serbia, and Bosnia and Herzegovina.
* Turkey free trade agreement became effective in 2010
* Ukraine 2011
* [[European Free Trade Association]], signed in 2011 giving free trade with EU countries together with Switzerland, Norway, Iceland, and Liechtenstein
* USA ''Most-Favored Nation status'' from 2003

== Minimum wage ==
After years with a minimum wage of €288.10 per month, there was a small increase in 2019 to €331.30 before 2022 saw a jump to €532.50, €6,390 p.a.<ref>{{cite web |title=Montenegro repeats minimum wage |url=https://countryeconomy.com/national-minimum-wage/montenegro |date=2023}}</ref> 

== Taxation ==
VAT standard rate is 21% in 2022, with some items at 7% and is in line with EU guidelines.<ref>{{cite web |title=Value-added tax (VAT) |url=https://taxsummaries.pwc.com/montenegro/corporate/other-taxes |date=21 April 2023}}</ref>

From 2023, a tax rate of 9% is applied to personal gross income above €700 per month, and a tax rate of 15% for income above €1,000 per month. Montenegrin municipalities also apply an income tax surcharge equivalent to 13-15% of the national tax rate. Social security costs are 15.5%, 6% being borne by the employee.<ref>{{cite web |title=Tax system in Montenegro |url=https://immigrantinvest.com/blog/taxes-in-montenegro-en/#:~:text=The%20tax%20rates%20are%20the%20same%20for%20citizens%20and%20foreigners,their%20worldwide%20income%20in%20Montenegro. |access-date=31 August 2023}}</ref>

== See also ==
*[[Outline of Montenegro#Economy and infrastructure of Montenegro]]
*[[Geography of Montenegro]]
*[[Geology of Montenegro]]
*[[History of Montenegro]]
*[[Economy of Serbia and Montenegro]]

==Notes==
{{Reflist|group=note}}

== References ==
{{Reflist}}

== External links ==
{{commons category|Economy of Montenegro}}
*[https://web.archive.org/web/20110405040504/http://www.montenegro365.com/economic-business-financial-news-montenegro.html Montenegro Economy and Financial News]
*[https://web.archive.org/web/20070104140925/http://www.njegoskij.org/menu_today/menu_countryProfile.php The Njegoskij Fund Public Project >> Country Profile on Montenegro]
*[https://www.cia.gov/the-world-factbook/countries/montenegro/ CIA World Factbook - Montenegro]
*[https://www.nytimes.com/slideshow/2010/08/19/business/20100819-montenegro-slideshow.html A New Playground for the Rich], a slideshow by ''[[The New York Times]]''.

{{Montenegro topics}}
{{Central European Free Trade Agreement}}
{{Economy of Europe}}

[[Category:Economy of Montenegro| ]]
[[Category:Economies of Europe by country|Montenegro]]