A recent survey by the Chamber of Commerce of Montenegro (PKCG), conducted in March and April 2025, indicates a slight improvement in the country’s business climate compared to the previous year. The average rating for the business environment rose to 2.47 from 2.37 in 2024, although it remains below the pre-pandemic level of 3.05. Despite this modest progress, many structural challenges persist.
Key improvements were observed in the areas of public procurement and digitalization. These advances are largely credited to reforms such as legislative improvements, digitalization of procedures, increased transparency, and stronger institutional capacity. These changes have contributed to a more efficient and predictable environment in those sectors.
However, businesses continue to face several persistent barriers. The informal economy and unfair competition remain the most significant challenges. Additionally, companies struggle with a shortage of skilled labor, high fiscal and parafiscal charges, and limited access to financing. The justice system is still perceived as inefficient, which undermines legal certainty and business confidence.
The outlook for the remainder of 2025 is cautiously optimistic. Business expectations suggest a potential improvement to a 3.03 rating by year’s end, with a further increase anticipated in 2026. Still, inflation remains a concern—over 60% of surveyed businesses expect prices to continue rising, despite global trends suggesting a slowdown. Export growth expectations remain low, highlighting ongoing challenges in competitiveness and market access.
The labor market continues to reflect difficulties in aligning the education system with business needs. Migration of the workforce and lack of qualified personnel are pressing issues. The rule of law remains one of the weakest-rated areas, with little improvement noted. Although access to finance has slightly improved, the sector continues to receive some of the lowest ratings overall.
Digital transformation appears to be a bright spot, showing recovery after setbacks in 2024. Financial digital services received the highest marks, whereas local government digital services were viewed as the weakest. This signals an opportunity for further development and more consistent quality across public digital platforms.
Overall, while there are signs of gradual improvement, Montenegro’s business environment in 2025 continues to face serious structural hurdles that require long-term, focused policy efforts.
