The Chamber of Commerce of Montenegro (PKCG) does not support any form of boycott of its members, regardless of the sector in which they operate, and considers it unjustified, as it directly impacts the economy, which is not responsible for the challenges that are being attempted to resolve in this manner.
In a statement, PKCG emphasized the specificity of the Montenegrin economy, which is heavily dependent on imports and thus significantly affected by global and regional economic trends.
“The coverage of imports by exports is only 14%, which further complicates the situation and increases the vulnerability of our economy. Therefore, when comparing our market to those in the region and beyond, the overall economic environment must be taken into account,” said PKCG.
They pointed out that the wholesale and retail trade sector is one of the most significant sectors of the Montenegrin economy, as it represents the largest individual share in gross added value, accounting for 13.7% in 2023, and employs more than a third of all employees in the private sector.
“Therefore, general assessments of companies in this sector should not be made lightly. All companies submit financial statements to the Tax Administration, and it is easy to determine, among other things, that the gross margin in Montenegro is lower than in Slovenia, Serbia, and Croatia. The ‘Analysis of Prices and Business Operations of Trade Enterprises in Montenegro – the Food and Non-Alcoholic Beverages Sector,’ conducted by a team of professors from the Faculty of Economics, showed that the price increase in the previous period was not a result of irrational behavior by traders but factors beyond the economy’s control. The analysis also showed that the trade sector is not a generator of inflation, and that price increases are inevitable when wages grow faster than productivity, a point the Chamber has previously highlighted. Therefore, inflation drivers should be further analyzed, including the impact of certain economic policies,” the statement reads.
They also pointed out that the administrative apparatus has significantly expanded, and that with the increase in wages in the past period, which was not accompanied by an increase in labor productivity, a paradoxical situation has arisen where personal incomes in the public sector are higher than those in the real sector, i.e., the economy, which finances the budget and public sector.
“Our assertion that long-term sustainable growth cannot be based solely on stimulating personal consumption is confirmed by the growth rate of 2.6% in the third quarter of 2024, which is the lowest quarterly growth rate in recent years. On the other hand, we understand the government’s intention to improve the citizens’ standard of living, increase budget revenues so that more can be invested in infrastructure, which is fully supported by the entrepreneurs gathered in the Chamber. However, we believe that our dialogue on these issues must be intensified to avoid decisions that could reduce economic activity and slow down the economy by making business operations more difficult,” the statement from PKCG said.
Recently, an initiative for a boycott of purchases in retail chains has been launched via social media and unions to address high prices in supermarkets, protect the citizens’ standard of living and reduce margins.
