Montenegro’s industrial production increased by 31.6% year on year in the third quarter, driven primarily by electricity generation and mining, while manufacturing recorded growth of just 0.6%, according to figures published by the statistical office.
The strongest expansion came from electricity, gas, steam and air-conditioning supply, where output surged 170.9% compared with the same period of the previous year. Mining and quarrying production increased by 95.8%, making these two activities the main contributors to the overall industrial growth. The contrasting performance of industrial sectors highlights the significant influence of electricity production and extractive activities on Montenegro’s manufacturing and industrial indicators.
Higher electricity output can generate export revenues, reduce dependence on imported energy and provide more reliable supplies for businesses. Annual growth measured against a weaker comparative base does not necessarily indicate a lasting increase in installed production capacity.
Mining performance can also fluctuate depending on individual extraction sites, contractual arrangements and operating schedules. Quarterly figures show a different trend, with total industrial production declining by 2.1% compared with the second quarter.
Manufacturing output contracted by 7.9% quarter on quarter, while mining and quarrying increased by 13.2%. Electricity, gas, steam and air-conditioning supply recorded growth of 5.9% over the same period. Manufacturing’s limited annual expansion and quarterly decline remain significant for an economy seeking to reduce dependence on imported products, attract industrial investment and develop higher-value export activities.
Growth in electricity production alone cannot provide the broad network of domestic suppliers and industrial production capabilities required to expand manufacturing activity. For industrial companies, further development requires investment in production equipment, reliable electricity supply, workforce skills, access to working capital and export logistics.
Foreign investment patterns also highlight the importance of directing more capital towards productive business activities, as property continues to attract substantially more investment than domestic companies and banks. Montenegro’s industrial recovery is therefore characterised by substantial gains in electricity and mining output, while manufacturing recorded only marginal annual growth and a quarterly contraction.
