Montenegro recorded a €1.92 billion merchandise trade deficit in the first half of 2026, as goods exports declined while imports continued to increase. Merchandise exports amounted to approximately €261.4 million, down 7.4% year on year, while imports reached around €2.178 billion, representing growth of 3.4%.
Exports covered only 12% of imports during the six-month period, highlighting the scale of Montenegro’s dependence on foreign goods and on other sources of external earnings and financing. The composition of trade reflects Montenegro’s economic structure. The country imports machinery, vehicles, fuel, construction materials, consumer products and food, while its merchandise-export base remains relatively narrow. Machinery and transport equipment represented approximately €536.6 million of imports during the period.
Electricity remains an important export component
Electricity is among Montenegro’s significant merchandise export categories, making trade performance sensitive to hydrological conditions and domestic power generation. Electricity-sector performance during 2026 therefore has a direct effect on the external trade balance. Higher domestic generation can increase electricity exports, while weak hydrology or major power-plant outages can reduce that contribution.
The size of the merchandise deficit also increases the importance of tourism and other services in Montenegro’s external economy. Foreign visitors generate service-export revenues that help offset the cost of imported goods consumed by households, companies and the tourism sector. Transport, information and communications technology, and business services provide additional sources of foreign-currency earnings. Foreign direct investment and external borrowing cover part of the remaining external financing requirement.
Infrastructure investment affects import demand
Major infrastructure projects can temporarily increase the merchandise deficit because motorway, railway and energy developments require imported machinery and materials. The economic effect depends on whether those imports create productive assets that subsequently expand export capacity or reduce reliance on imported goods. Energy investments can reduce electricity imports, while improved logistics infrastructure can support trade. Investment in food processing can replace some imported consumer products, and tourism infrastructure can increase service-export revenues.
Montenegro’s €1.92 billion goods deficit in the first six months of 2026 therefore sits alongside tourism revenues, foreign investment, energy generation, infrastructure investment and external financing as interconnected components of the country’s external economic structure.
