Credit rating agency Standard & Poor’s (S&P) has confirmed Montenegro’s stable outlook, maintaining its B+ rating, according to the Ministry of Finance. This confirmation is seen as an encouraging result and a motivation to continue positive economic trends, which will contribute to improving citizens’ standards, attracting more investments, and realizing significant capital projects.
Montenegro is recognized as the most advanced country in the Western Balkans region in the process of joining the European Union (EU), having made progress in several areas related to EU common rights and obligations, known as the EU acquis. Successful closure of key chapters could further accelerate progress in other areas still under negotiation.
Economic growth in Montenegro is expected to reach 3.7% this year, up from 3.4% last year, driven by increased investments and higher consumption. Investments remain a key growth driver, supported by ongoing projects in real estate, energy, and tourism sectors, which continue to attract capital. If Montenegro maintains its current investment cycle and external conditions remain stable, economic growth is projected to average around 3% annually from next year until 2028.
Tourism directly contributes more than a quarter of the nominal GDP and has an even greater impact when indirect effects are considered. S&P’s report suggests that Montenegro’s credit rating could improve if fiscal results exceed current expectations, alongside a declining trend in net public debt. This could occur with strong economic growth.
Over the past few years, foreign direct investments (FDI) have covered about 50% of the cumulative current account deficit, and this trend is expected to continue. Investments are concentrated in tourism, real estate, and energy sectors.
Montenegro’s banking sector remains liquid, with non-performing loans (NPLs) falling below 4.7% by the end of September last year, the lowest level recorded so far, and a capital adequacy ratio of around 19.3%. The banking system is dominated by subsidiaries of foreign banking groups, enhancing its stability and risk management capabilities.
The Ministry of Finance emphasized that the confirmation of the credit rating is particularly significant given the challenges posed by temporary state financing and global uncertainties. They remain committed to preserving macroeconomic and financial stability and improving the economic standard of citizens.
