Montenegro recorded strong increases in industrial production, tourism, employment and bank lending during the first eight months of 2026, but the gains were uneven across economic sectors. Electricity generation and mining accounted for most of the industrial expansion, while manufacturing recorded only marginal growth.
Industrial production increased by 18.2% compared with the same period a year earlier. Electricity, gas and steam output surged 59.3%, while mining and quarrying grew by 15.7%. Manufacturing, by contrast, expanded by just 0.8%.
Differences were also pronounced within manufacturing. Production of fabricated metal products increased by 88.0%, while basic metals output rose 42.2%. Clothing production moved in the opposite direction, declining by 46.3%.
The figures indicate that industrial growth is concentrated in energy generation and extraction, with limited expansion across manufacturing as a whole. Other economic indicators also showed positive activity. Tourism arrivals increased by 9.09%, employment was 4.38% higher than a year earlier, and bank lending expanded by 9.80%.
Household purchasing power, however, came under pressure as inflation accelerated. Consumer prices rose 4.5% in August, compared with 3.8% in July. Transport prices increased by 5.4% during the month, driven largely by a 10.2% rise in fuel and lubricant prices for motor vehicles. Although nominal wages recorded a slight increase, real net earnings declined by 0.9% month on month.
The divergence between stronger employment and falling real earnings reflects the pressure that rising prices can place on household purchasing power even as labour-market conditions improve. Energy, mining, construction-related activity and tourism are recording stronger expansion, while manufacturing remains comparatively subdued. The distribution of growth across these sectors shows that Montenegro’s economic performance is being driven by a relatively narrow group of activities rather than a broad-based increase in industrial output.
