Montenegro economy faces rising inflation and trade deficit

Montenegro is experiencing significant economic shifts characterized by a widening trade gap and rising inflation. An analysis by the Economic Chamber of Montenegro reveals that while nominal exports rose slightly to approximately 571 million euros by 2025, imports surged by 201% to 4.39 billion euros. This has resulted in a real decline in exports of about 30%, leaving the country importing nearly eight euros for every one euro exported.

Data from Montstat indicates that while average net wages in July reached 1,040 euros, real income has declined due to inflation. The inflation rate of 4.3% since the end of last year is triple the rate of growth for wages and pensions, leading to a nearly 3% drop in real purchasing power. Significant price increases were noted in transport (11.2%) and food (5%).

In other sectors, Montenegro's national parks saw a 10.78% increase in visitors, with Durmitor being the most popular, though Skadar Lake experienced a decline. Additionally, the Ministry of Finance reported a budget surplus of 25.4 million euros for the first seven months of the year, driven by strong tax revenues. Meanwhile, the construction sector is bracing for growth, with new building contracts increasing by 91% in the first half of the year.