Montenegro’s GDP increased by 3.2% year over year
The Balkan nation of Montenegro is located in the center of Europe. It boasts a stunning natural setting and is abundant in numerous natural resources, most notably bauxite and aluminum.
The global recession had a huge influence on Montenegro, which saw a significant decline in its service-based businesses. Nevertheless, despite being slower than that of other Eastern European countries, the recovery has been continuous.
Furthermore, by most economic criteria, Montenegro is ranked in the center of the pack. Due to its business-friendly investment environment, Montenegro currently draws significant private investment. Since the celebration of its independence in 2006. Montenegro has attracted more foreign capital per resident than any other nation in Europe.
The statistical office said on Wednesday, citing preliminary data, that Montenegro’s gross domestic product (GDP) expanded by a real 3.2% on the year in the third quarter of 2022, following 12.7% growth in the prior quarter.
The real GDP of Montenegro increased by 25.8% in the third quarter of 2021. According to a statement from the statistical office, the country’s GDP increased to 1.824 billion euros ($1.945 billion) at current prices in the third quarter of 2022 from 1.599 billion euros a year earlier.
What kind of economy does Montenegro have?
In the third quarter of 2022, final consumer expenditure increased to 1.470 billion euros from 1.208 billion euros in the same time the previous year. 1.168 million euros were exported, whereas 1.252 billion euros were imported.
As a result, Montenegro’s exports are quite little (around $500 million USD) in comparison to its imports (approx. 2,500 billions USD). Even while China is pounding on the door to change that, its FDI stock is still fairly modest (15 percent of its GDP translates to about 750 million USD).
At the time of its independence, its public debt was relatively modest (36% of its GDP), but it is now exploding (to more than 72%, with a 5% annual deficit, still far from Brussels norms for integration in the E.U.). Before 2025, it must equal 100% of the GDP, and it almost certainly will:
The Motorway between Bar and Belgrade, which is currently Montenegro’s largest infrastructure project, will cost alone 15% of the country’s GDP (due to the bridges and tunnels that must be built). China is funding the project through a loan in order to provide a quick route to Belgrade from an Adriatic port. China will possess both the infrastructure and the land it is built on in the event of payment default.
Serbia continues to be Montenegro’s primary trading partner (around 25% of import/export) 13 years after the country gained its independence. One may well wonder what all the hoopla was about. And what benefits this brought to Montenegrin citizens’ lives—aside, of course, from the governing Djukanovich clan. Its political friends and vassals, who essentially privatized the nation and pocketed the proceeds.
