Just about 30 years ago, Montenegro was the most underdeveloped country in the former Yugoslavia. Today, the situation is quite different. Montenegro is one of the most stable and developed states in the Western Balkan region. Since its independence in 2006, Montenegro has seen substantial economic growth, almost doubling its GDP.
Just like every other country in the world right now, Montenegro is suffering huge economic losses from the COVID19 health crisis. Still, with the development of tourism and other economic branches, there’s hope for quick recovery.
The first thing you have to know about the Montenegrin economy, especially if you are an investor, is that there’s a huge difference between the Northern and Southern parts of the country. Back in Yugoslavia, and under the rule of communism, the North was the center of the Montenegrin industry, while the South had decent touristic potential. Today, the South has been developing as one of Europe’s most popular destinations, while the North has seen somewhat of an economic decline. Still, the North of the country should not be underestimated, as it has incredible potential as well. The Montenegrin government has implemented various strategies to make it more appealing to foreign investors, so investing in it can definitely be incredibly rewarding.
It’s also important to note that Montenegro holds the EURO as its official currency. This simplifies potential business relationships with EU countries. Montenegro has goals of joining the EU in the next decade, so having the EURO as it’s official currency is going to make the transition somewhat easier. Other than that, its simple tax system, low taxes, free trade regime, and steady economic development set a perfect environment for starting a business. Also adding, that Montenegro is one of the first “ecological states” in Europe. Its wild and intact nature and its agricultural and natural potential are bound to play a huge part in the development of the country’s economy in the years to come. Many investors have taken notice of this and have begun to invest in the country.
Montenegro is well connected to the world, having two international airports, decent roads, maritime transport, and a railroad. Mobility inside the country is also simple, considering that is an incredibly small country.
The potential for the development in the agriculture Industry in Montenegro is also quite huge. It has all the necessary resources, but it still lacks relevant economic strength. Nonetheless, it has a small and dynamic economy that just keeps on growing. Combine that with incredibly low taxes, and you will get one of the best places for starting a business in Europe.
As amazing as it is, Montenegro is still a developing country. You can’t expect it to have a standard of living equal to that of Western European countries such as Germany or Austria. But still, as previously mentioned, there is a lot of potential for that to change sometime in the near future. Foreign investments such as the Porto Montenegro and Luštica Bay, the digitalization processes in the business world, advance of tourism, the ascension to NATO, and getting closer to the EU membership, have all made the Montenegrin economy become what it is today.