Montenegro’s industrial production data for the first four months of 2026 indicates a recovery that is both real and uneven. The total industrial output index reached 108.6, reflecting an 8.6% increase compared to the same period in 2025. However, this recovery is primarily driven by the energy sector, particularly electricity, gas, steam, and air-conditioning supply, while manufacturing and mining sectors continue to lag behind.
For January to April 2026, the overall industrial index stood at 119.4 against the 2025 annual average, compared to 109.9 for the same period in 2025. This suggests a stronger start to the year relative to last year’s average production levels. Nevertheless, April data revealed a significant monthly correction, with total industrial output indexed at 106.3 against the 2025 average but only 84.4 compared to March 2026, indicating a decline in momentum after a robust first quarter.
The sectoral breakdown highlights that the energy supply segment performed exceptionally well, with an index of 203.9 for January-April 2026 against the 2025 average and 130.8 compared to January-April 2025. This translates to a year-on-year increase of 30.8% in energy supply during the first four months. Although April’s performance was weaker than March’s, it still maintained an index of 127.7 against the 2025 average and 153.1 compared to April 2025.
Conversely, the mining and quarrying sector experienced a decline, with an index of 87.2 for January-April 2026, reflecting a decrease of 12.8% year-on-year. While it stood at 115.4 against the annual average for 2025, the year-on-year comparison indicates weaker mining activity than last year. The sector also saw a sharp drop in April, with an index of only 74.4 compared to March.
Particularly affected were metal ores, which recorded an index of just 68.6 for January-April 2026, marking a year-on-year decline of 31.4%. Although there was slight improvement in April with an index of 117.7 against the average for 2025, it remained lower than April last year at an index of 86.2.
In contrast, coal and lignite mining showed notable volatility; its January-April index was at 105.8 year-on-year, but April’s figure was exceptionally high at 300.0 due to a low comparative base from April 2025 when it was only at 16.8 against the annual average.
The manufacturing sector remains the weakest link in Montenegro’s industrial framework, with an index of only 97.2 for January-April 2026, representing a decrease of 2.8% year-on-year and standing at just 85.9 against the annual average for 2025. While April showed stability with an index of 100.7 compared to March and slightly improved from April last year at an index of 100.6, manufacturing has yet to emerge as a key driver in Montenegro’s industrial recovery.
Food production emerged as one of the stronger areas within manufacturing with an index of 103.9 for January-April compared to the same period last year and showing significant growth in April as well.
Beverage production recorded a lower year-to-date performance with an index of just 96.4 but improved sharply in April to reach an index of over 112 compared to last year’s figures.
However, apparel manufacturing saw marked declines with an index of only 79.5 for January-April and a dismal performance in April at just over half that figure compared to last year’s month.
The overall data reveals a two-speed economy within Montenegro’s industrial sector; while energy supply is driving growth significantly supported by strong indices, manufacturing is stabilizing in select branches but remains below previous levels overall.
This uneven recovery has implications for Montenegro’s broader macroeconomic landscape as industrial production influences GDP composition and fiscal flows among other economic factors. A recovery predominantly reliant on energy supply does not necessarily equate to comprehensive industrial diversification or resilience.
The findings from April emphasize that while Montenegro’s industrial recovery is underway, it lacks broad-based strength across all sectors. A sustainable expansion will require consistent growth in manufacturing alongside stabilization in mining activities beyond coal-related volatility.
