Montenegro recorded a current-account deficit of €594.9 million in the first quarter of 2026, widening 15.1% compared with €516.6 million in the same period a year earlier, according to data from the Central Bank of Montenegro. The deterioration came as the country’s services surplus weakened, while the merchandise trade deficit remained elevated. The combined deficit in goods and services increased 7.5% year on year to €690.2 million.
Goods deficit remains the main external pressure
Weak merchandise exports continued to weigh on Montenegro’s external position. Exports of goods declined 11.3% to €143.2 million during the first quarter, while imports remained almost unchanged at €917.8 million. As a result, the goods deficit expanded to €774.6 million, exceeding the value of exports by more than five times. Montenegro’s economy relies heavily on imports of consumer goods, equipment, vehicles, fuel and construction materials, while exports remain concentrated in electricity, metals, mineral products and a limited number of manufactured goods.
Services surplus declines
The surplus generated by internationally traded services decreased during the first quarter of 2026. The services surplus fell 26.7% to €84.4 million, compared with €115.2 million in the same period of 2025. Total services revenue declined 14.7% to €311.8 million, while services expenditure decreased 9.2% to €227.4 million. The decline affected several categories, including transport, travel, construction services and other business services.
Transport balance weakens
Montenegro’s transport services surplus dropped significantly during the first quarter. The transport surplus declined 62.7% year on year to €8.1 million. Transport revenue decreased 23.2% to €120.2 million, while expenditure fell 16.8% to €112.1 million. Transport-related earnings are influenced by activities connected with the Port of Bar, aviation services, road freight and regional logistics flows. The figures show continued exposure to changes in maritime, air and transport activity.
Tourism remains the largest services contributor
Travel continued to represent the strongest component of Montenegro’s services balance. Foreign visitor spending generated €86.4 million in receipts during the first quarter, down 2.3% from a year earlier. Spending by Montenegrin residents abroad increased 8.3% to €16.1 million.
The travel surplus declined 4.5% to €70.3 million. The first quarter traditionally represents a weaker period for tourism, with the majority of revenues generated between June and September in coastal destinations including Budva, Herceg Novi, Kotor, Tivat, Ulcinj and Bar. Tourism data for January-May showed limited growth, with tourist arrivals increasing 0.94% and overnight stays rising 1.10%. Foreign arrivals grew 0.54%, while foreign overnight stays increased 0.90%.
Construction and business services lose momentum
Construction services also recorded weaker external performance. The sector’s surplus declined from €4.3 million in the first quarter of 2025 to €343,000 in the first quarter of 2026. Construction services revenue decreased 18.9% to €6.8 million, while expenditure increased 57.2% to €6.5 million. Other business services, including consulting, engineering and professional activities, generated revenue of €37.3 million, down 24.5% year on year. Expenditure declined 16.7% to €31.7 million, leaving a surplus of €5.6 million, approximately half the previous year’s level.
Income balance turns negative
Montenegro’s primary income balance moved from a €30.4 million surplus in the first quarter of 2025 to a €4.5 million deficit in the first quarter of 2026. Portfolio investment income expenditure increased to €65 million, reflecting higher costs related to securities held by foreign investors. The secondary income balance remained positive, generating a surplus of €99.8 million, compared with €94.9 million a year earlier. Remittances, employee compensation and other transfers continued to support the external balance.
Foreign investment inflows weaken
Foreign direct investment provided partial financing support during the first four months of 2026. Gross FDI inflows reached €276.5 million between January and April, down 7.1% year on year. Net FDI inflows declined 26.8% to €119.3 million.
Total FDI outflows increased 16.7% to €157.2 million, partly due to repayments of intercompany loans. Real estate remained the dominant category, accounting for €147.4 million, or more than half of gross inflows. Investment in Montenegrin companies and banks increased 79.4% to €42.4 million, while intercompany debt generated €82.5 million, down 22.5%.
Services sector remains concentrated
Montenegro’s external services earnings continue to depend largely on tourism and transport, leaving the economy exposed to seasonal demand and changes in travel activity. Potential areas for broader foreign revenue generation include port logistics, maritime services, yacht maintenance, digital services, professional support activities and energy trading. The country’s participation in SEPA and the introduction of instant payments in July 2026 improve cross-border payment infrastructure, while the external balance continues to depend on stronger export capacity and service-sector diversification.
