Europe

Montenegro Business

The industrial base in Montenegro has traditionally been based on sheep and goat breeding. Tourist traffic has traditionally been of great importance on the coast, but the industry was sharply reduced in the 1990s due to the political situation.

At independence in 1991, Montenegro was the least developed of the Yugoslav republics. Until 1996, there was little economic development.

From the mid-1990s, Montenegro has enjoyed steady economic growth. Inflation is low, but unemployment is high. Investments from abroad remain at a high level. Many foreign players have invested in the tourism industry.

According to countryaah, Montenegro has privatized its large aluminum industry.

Gross Domestic Product (GDP) of Montenegro

Agriculture and forestry

Montenegro generally has a small agricultural sector, mostly near the coast where the Mediterranean climate makes it possible to grow olives, citrus fruits, grapes and rice. The arable farm is concentrated to valleys and poles, and is partly favorable to the water. At Zetasletta, north of Lake Scutari, corn, potatoes, wheat, tobacco, fruit and grapes are grown. Some livestock (sheep, cattle, pigs). In the highlands it is widespread with animal husbandry of goats and sheep.

Mining and energy

It breaks down lignite and bauxite, among others.

Industry

The industry is dominated by the aluminum, iron, steel and metal industries. Large production of semi-finished products. Also part of the textile industry, including cotton yarn production.

Transport and Communications

The road network is relatively well developed and is approx. 7300 km (2008). There were the same year approx. 250 km of railway. The main connection goes from the town of Bar on the Adriatic coast, through the capital Podgorica, and further north to Serbia. Main port cities are Bar and Kotor.

Economic development

Before the First World War, most of the people in Montenegro earned their living in agriculture. Most of the industrial sites that existed until then were destroyed after the war. The economy then went up in socialist Yugoslavia. In the 1980s, the productivity of the Montenegrin economy increased enormously. For example, a factory for processing aluminum, a steel mill and a refrigerator factory were built.

Despite this, Montenegro was a little weaker economically than the other Yugoslav republics. During the war in Yugoslavia, Montenegro was cut off from western states. To date there are few companies from Western Europe in the country.

Currency and industries in Montenegro

Today the country has a market economy similar to that in Germany. The restructuring of the economy in this direction took place at the time of the “Federal Republic of Yugoslavia”, which Montenegro formed together with Serbia from 1992 to 2003. In 2002, the euro was also introduced in Montenegro. Before that, the German mark was the currency. Although Montenegro is not a member of the EU and the euro area, it took advantage of the euro when it was introduced. The country still has no currency of its own. Four areas are particularly important for the economy, namely tourism, agriculture, energy and shipping.

Tourism

Tourism is an important economic field in Montenegro. As early as the 1920s, many tourists came to Montenegro to vacation in the country and to lie on the beautiful beaches. In the 1930s, the Montenegrin beach of Becici was even voted the most beautiful in Europe.

That worked until the war in Yugoslavia broke out. After the armed conflict, tourism only slowly recovered. By the way, in Montenegro you can not only lie in the sun by the sea, but also wonderfully ski! The country’s many mountains offer perfect conditions for this.

Agriculture

Montenegro is a very mountainous country and forests cover 40 percent of the area. That is why it is not that easy to do agriculture there, because only a few areas can be used for this. The agriculture of Montenegro is not so important because of its mass of products, but because the smaller quantities are particularly good and varied.

There are around 400 plant species in Montenegro that are processed industrially or for medicine. Fruit such as plums, oranges, olives and grapes are harvested on the coasts. Bees provide valuable honey and the Vranac and Krstac wines are also known beyond the country’s borders.