With continued political commitment and strategic planning, Montenegro is well-positioned to achieve sustainable growth and advance towards EU membership
Montenegro has made significant strides in terms of economic development and alignment with EU standards, though challenges remain in maintaining stability and momentum across several fronts. The country has shown a strong commitment to the EU accession process, but success in this endeavour requires a more cohesive approach and consistent efforts. Montenegro’s progress in the EU accession process accelerated notably with the 2020 adoption of the new EU enlargement methodology. This framework introduced stricter criteria, with a focus on the rule of law, anti-corruption measures and the protection of human rights. The European Commission’s positive 2024 report (IBAR) recognised the progress achieved by Montenegro in meeting key benchmarks, but it also emphasised the need for further efforts in judicial reform, developing administrative capacities to apply the EU acquis and establishing a functioning market economy.
Montenegro’s economy remains heavily dependent on tourism, which has experienced growth over the past three years. Tourism is expected to continue contributing significantly to the country’s GDP this year.
In its efforts to further strengthen Montenegro’s economy, the government has recognised the need to accelerate its diversification, particularly through the development of the IT sector, as well as energy and agriculture, with a special focus on the digital transformation process.
Montenegro’s path to full EU membership requires the government to remain focused on implementing reforms, upholding transparency principles and creating a favourable business environment
As part of its macroeconomic reforms, the government has taken steps to stabilise public finances and control inflation, while also reducing burdens on payroll contributions.
Following the EU Accession Programme for the 2024-2027 period, the government will focus on adopting and implementing key legislation in the areas of justice, the labour market and environmental management. These reforms are aimed at aligning Montenegro with EU standards and improving the business environment to better attract investment.
A recent OECD report praised Montenegro’s progress in achieving fiscal stability, highlighting the importance of continuing to implement key development projects. It called for particular emphasis to be placed on further economic diversification, strengthening infrastructure capacities and making significant strides in green and digital transitions.
FDI remains one of the key components of Montenegro’s economic development. Total FDI inflows over the first eight months of 2024 reached €575.2 million, reflecting investor confidence in the country.
Achieving the goals set out in EU accession negotiations should lead to better utilisation of Montenegro’s economic and investment potential. The key priorities on this path should include political stability and transparency, but also the inclusion of the business sector in decision-making processes.