Political situation

Montenegro is a parliamentary democracy in which power is divided into executive (the Government), legislative (the Parliament) and judicial.

Montenegro officially declared its independence in 2006, and the first parliamentary elections in the independent Montenegro were held in the same year. So far, four parliamentary elections have been held.

The Constitution of Montenegro which is in the effect was adopted on 22 October 2007 and amended in 2013.

At the last parliamentary elections which were held in 2023, the following parties/political coalitions won seats in the Parliament: Europe Now Movement (25,53%, 24 seats), the Coalition "Together", led by the Democratic Party of Socialists (23,22%, 21 seats), the Coalition "For the Future of Montenegro" (14,74%,13 seats), the Coalition "It Counts Bravely" - Democratic Montenegro and Civic Movement URA (12,48%,11 seats), Bosniak Party (7,08%, 6 seats), Coalition Socialist People's Party and Demos (3,13%, 2 seats), The Albanian Forum (1,91%, 2 seats), Albanian Alliance (1,49%, 1 seat), Croatian Civic Initiative (0,74%, 1 seat).

The Prime Minister of Montenegro Milojko Spajić is a member of the Europe Now Movement and the Government is comprised id ministers who are members of: the Europe Now Movement, Democratic Montenegro, Socialist People's Party, Albanian Alliance and the Albanian Forum. 

At presidential elections held in April 2023, Jakov Milatović, the candidate of the Europe Now Movement won the majority of votes.

The President of Montenegro is elected for a period of 5 years.

Economic situation

The gross domestic product of Montenegro in 2023 was 6.963.615 million euros, while in 2021 it was 4,955 million euros. Gross domestic product per inhabitant in 2023 amounted to 10.998 euros, while in 2021 it amounted to 8,002 euros. 

Montenegro has made significant progress in its transition towards the market economy. Real Gross Domestic Product (GDP) growth has averaged 4.6 percent during 2006-2010 with inflation in the low single digits (below 4 percent). These numbers compare well with the countries that joined the EU in May 2004 (EU8), as well as the EU15. GDP growth in 2006-2008 averaged nearly 9 percent per annum, but 2009 was marked by a severe recession due to the global economic and financial crisis, with a GDP contraction of 5.7 percent.

Gross domestic product of Montenegro amounted to 3 458 million EUR in 2014, whereas in 2013 it amounted to 3 362 million euro. Gross domestic product per capita in 2014 amounted to 5 561 EUR, whereas in 2013 it was 5 412 EUR.

Gross domestic product of Montenegro in 2015 was 3 655 million EUR, while in 2014 it was 3 458 million EUR.

Gross domestic product per capita in 2015 was 5 826 EUR and for 2014 was 5 561 EUR. Gross domestic product of Montenegro in 2016 was 3 954 million EUR, while for 2015 it was 3 655 million EUR.

Gross domestic product per capita in 2016 was 6 354 EUR and for 2015 was 5 873 EUR.

Source: MONSTAT

Percentage allocation for education, relative to GDP:

Source: MONSTAT

In accordance with the Census 2023, looking at the age groups, children from 0-5 years, representing preschool age, make up 6.85% of the total population. There are 11.18% children of primary school age, from 6-14 years, while 4.63% of secondary school children, from 15-18 years, in the total population. The population from 0 to 14 years of age constitutes 18.03% of the total population. The working-age population (15-64 years) makes up 65.13%, while the population aged 65 and over is 16.84%. Adult population makes up 78.45% of the total population.

In accordance with Census 2011 total number of population 15 years of age and over is 260 277, i.e. 52% of persons with secondary school completed. However, of that number, there are 27 285 persons currently attending the university. There is 17% of population in Montenegro with higher or high school attainment, either by the old or by the new - Bologna system of education. The average age of population with secondary school, and currently not attending school is 44 years, and the average age of persons with primary school as the highest level of education completed is 56.

Key sectors of Montenegro’s open economy—and potential growth engines over the longer term—include tourism, service, and other knowledge-driven industries. Montenegro’s energy sector could also become an important source of growth and exports provided that environmental impacts can be adequately contained.

The dissolution of the political union between Serbia and Montenegro in 2006 led to separate membership in several international financial institutions, such as the European Bank for Reconstruction and Development. In January 2007, Montenegro joined the World Bank and the IMF. Montenegro became the 156th member of the World Trade Organization in December 2011.

The share of Small and Medium Enterprises (SMEs) has constantly increased but these firms remain focused on the domestic market and need to become more competitive. An important mechanism for increasing competitiveness encompasses improvements in the efficiency and quality of higher education and the strengthening of the links between research and innovation and business.

In September 2024, the Government of Montenegro adopted the document Macroeconomic and Fiscal Policy Guidelines for the period 2024-2027. In the next three years, the Montenegrin economy will grow at an average annual rate of 3.7 percent. Preliminary forecasts indicate real economic growth of 3.8 percent this year, based on further growth of the tourism sector, continuation of high private consumption, as well as recovery and further growth of investments, based on relevant plans and the adopted capital budget. The economic growth prospects in the medium term are supported by the available financial support instruments of the EU through the Growth Plan. 

The initiative of the European Commission, the Growth Plan for the Western Balkans, represents a great chance for the accelerated development of the countries of the region and the intensification of the EU accession process. The clear commitment of the states of the region to the implementation of reforms, accompanied by the readiness of the EU to help in key areas and to increase the financing of projects, will contribute to the achievement of long-term and sustainable results, further transformation and development of the region and accelerate its integration into the EU.

Source: Government of Montenegro