Montenegro’s industrial output increased by 20.7% year on year in the first eight months of 2026, driven primarily by a sharp rise in electricity production, while manufacturing recorded only marginal growth, according to the European Commission’s review.
Industrial output rose by 20% in the second quarter, before accelerating to 27.3% in July and 53.5% in August.
Electricity production increased by 105.3% year on year in January-August, while mining output grew by 28.6%. Manufacturing output, by contrast, rose by just 0.9%, indicating that the industrial rebound was concentrated in energy and resource-related activities rather than spread across the wider manufacturing sector.
The performance makes electricity generation a significant factor in Montenegro’s economic results, with production levels influencing industrial output, trade balances and fiscal revenue. The sustainability of the rebound remains exposed to hydrological conditions, plant availability, commodity markets and the limited scale of the domestic industrial base.
The European Commission also reported that exports of goods and services recovered in the second quarter following five consecutive quarters of decline. Net exports contributed positively to GDP growth for the first time since summer 2023.
The report does not provide electricity-export volumes, meaning the improvement in external trade cannot be attributed directly to power exports based on the available figures.
The electricity production increase nevertheless highlights the sector’s influence on the national industrial index and reinforces the economic importance of investment in energy infrastructure. As Montenegro expands variable renewable generation, transmission upgrades, energy storage, balancing capacity and cross-border electricity trading are becoming increasingly relevant to the sector’s development. Turning higher electricity production into a more durable export platform will depend on generation diversification, reliable grid infrastructure, project delivery and commercial arrangements capable of capturing value from renewable and flexible power generation.
