Montenegro’s economy is expected to grow at an average annual rate of 3.7% in the medium term, as outlined in the draft Economic Reform Program (PER) for the period 2025-2027. The document was presented at a roundtable organized by the Ministry of Finance, with support from the United Nations Development Programme (UNDP) in Montenegro, under the project “Strengthening Public Financial Management in Montenegro,” funded by the Slovak Ministry of Finance.
The draft PER, which will be aligned with the Budget Proposal, consists of two main sections: the macroeconomic framework and the fiscal framework. This year’s program introduces a significant change, with structural reforms that were previously part of the program now incorporated into the Reform Agenda/Growth Plan.
Bojana Bošković, National PER Coordinator and State Secretary at the Ministry of Finance, highlighted that a new chapter on aligning the Reform Agenda with the macro-fiscal framework has been added to ensure coherence and credibility in economic and fiscal policies.
Under the basic macroeconomic scenario, Montenegro’s economy is projected to grow by 4.8% in 2025, followed by 3.2% in 2026 and 3.1% in 2027. Inflation is expected to gradually slow, averaging 2.9% during this period, as pressures on prices in Europe ease.
The main drivers of the economic growth include strong household consumption, increased wages and pensions, tax policy reforms, a growing investment climate, and continued growth in tourism. Furthermore, an intense investment cycle is set to begin, with significant funding for infrastructure projects, including highway construction and railway reconstruction, backed by the EU.
The Western Balkans Growth Plan will provide Montenegro with €383 million in funding for structural reforms and infrastructure investments between 2023 and 2027. Additional funds will be secured through loans to support the ambitious infrastructure development plan.
Representatives from the EU Delegation, the German Embassy, trade unions, the Chamber of Commerce, UNICEF, and other stakeholders attended the roundtable and provided valuable feedback, which will be considered before finalizing the Economic Reform Program. The government plans to adopt the PER in January 2025 and submit it to the European Commission.
