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Montenegro - Macroeconomic Snapshot

October 2019.
Montenegro - Macroeconomic Snapshot More on
Montenegro

Political scene /

- Milo Đukanović and Duško Marković lead the State with pro-European and pro-Western politics
- Montenegro became a member of NATO in June 2017,
- The country obtained EU candidacy status, with 32 chapters opened, out of which 3 chapters have been temporarily closed.

Investment climate /

- At the end of the 2018, the Government signed a contract on the construction of a 250 MW solar power plant at the Briska Gora, Ulcinj with a consortium of companies.
- The consortium is planning to create 226 new jobs with a total investment of EUR 178M.
- The plan is for local companies to participate with EUR 20M in the total investment.
- An increase in FDI is expected to be sparked by new privatisations.
- The economic growth model should remain, more or less, the same in the next period.
- It should rely mainly on FDIs, as the government expects more interest in tourism projects, privatisations, the reconstruction of airports and energy projects.
- The Government adopted the Fiscal strategy for the period of 2017 – 2020, aimed at reducing the public debt level and improving opportunities for new borrowings on foreign markets.
- A ban on additional public employment and the optimisation of public wages, as a part of the strategy, should have a positive effect on public finances.
- Foreign investors have the same status as domestic investors.
- They may invest in any industry and are free to transfer funds, assets and other goods, including profit or dividends, and acquire rights to real estate property.
- Montenegro has free trade agreements with CEFTA, EFTA, Russia, Turkey and Ukraine, with access via land, sea, and sky to a market of more than 650M people.
- The Government plans to offer citizenship to foreign investors who are willing to invest in the country, especially in the undeveloped north and the project is ongoing.
- Moody’s set its rating at B1 with a positive outlook, while S&P’s rating stands at B+ with stable outlook, both of which are indicators at a good and stable macro environment.

Partners

Ebrd

Strategic partner

Karanovic Nikolic

Content partner

Confida

Content partner

I&F McCann

Communications partner