An Overview of the Economy
The Republic of Montenegro severed its economy from Serbia
during the Milosevic era (pre 2000). It maintained its own central
bank, customs tariffs and control over its own budget. It adopted
the Euro rather than the Yugoslav Dinar on January 1st 2002 in
response to rising inflation in Serbia and Montenegro. Inflation
was successfully curbed in Montenegro as a result.
Following Montenegro's independence from state union with
Serbia, Montenegro applied for membership of several international
economic institutions including the European Bank for
Reconstruction and Development. On 18 January 2007, the country
joined the World Bank and IMF. Montenegro is pursuing membership of
the World Trade Organisation and the European Union. Economic
reform in recent years has led to slow recovery and growth. Tourism
has grown and will continue to do so, and constitutes a major
growth factor in the economy. Unemployment remains a key
problem, though it has improved over recent years.
| Statistics |
|
| GDP (PPP) (IMF) (US$Billions) |
5.9 |
| GDP (PPP) (CIA) (US$Billions) |
5.9 |
| GDP Growth (IMF) (%) |
7.5 |
| GDP Growth (CIA) (%) |
7.5 |
| GDP Per Capita (IMF) (US$) |
- |
| GDP Per Capita (CIA) (US$) |
3,800 |
| GDP by Sector |
- |
| Inflation (%) |
3.4% |
| Population Below the Poverty Line (%) |
7% |
| Labour Force (Millions) |
259,100 |
| Labour Force by Occupation (%) |
Agriculture: 2%
Services: 68%
Industry: 30% |
| Unemployment (%) |
14.7% |
| Main Industries |
Steel and aluminium production, agricultural
processing, consumer goods, tourism. |
Sources: CIA World Factbook, IMF
GDP
An enormous 38.6% growth in GDP is estimated by the end of 2007,
however this level is not expected to be sustainable over the
longer term.
| economic indicators |
2003 |
2004 |
2005 |
2006 |
2007 |
| GDP (US%Billions) |
1.57 |
2.05 |
2.22 |
2.46 |
2.97 |
| GDP Annual Growth (%) |
2.3% |
4.2% |
4.1% |
6.5% |
7.5% |
| GDP Per Capita (US$) |
3,634 |
3,922 |
- |
- |
- |
| Inflation (%) |
- |
3.1% |
3.4% |
2.1% |
3.4% |
| Mobile Phone Users |
- |
- |
- |
821,800 |
- |
| Internet Users |
- |
- |
- |
266,000 |
- |
Source: IMF, CIA World Factbook
Major Exports & Imports
The leading export partners for Montenegro in 2006 were
Switzerland, Italy and Bosnia and Herzegovina. The leading import
partners were Greece, Italy, Germany and Bosnia and
Herzegovina.
Major Exports 2007
Manufactured goods, food and live animals, raw materials.
Major Imports 2007
Machinery and transport, fuels and lubricants, manufactured
goods, chemicals, food and live animals, raw materials.
| Export partners 2007 |
% of total |
| Switzerland |
83.9% |
| Italy |
6.1% |
| Bosnia & Herzegovina |
1.3% |
| import partners 2007 |
% of total |
| Greece |
10.2% |
| Italy |
10.2% |
| Germany |
9.6% |
| Bosnia & Herzegovina |
9.2% |
Source: CIA World Factbook
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