Montenegro’s economy recorded higher tourism activity, electricity generation and employment during the first eight months of 2026, while a €2.62 billion merchandise trade deficit and lower net foreign direct investment inflows highlighted continuing weaknesses in export capacity and the structure of economic growth.
Tourist arrivals increased 9.1% to 2.29 million, while overnight stays rose 8.1% to 12.79 million, according to the Finance Ministry’s September macroeconomic report. Industrial production expanded 18.2%, largely reflecting a 59.3% increase in electricity generation. Mining and quarrying output grew by 15.7%, whereas manufacturing production rose by only 0.8%, indicating that industrial growth remained concentrated in a limited number of activities.
Electricity was also Montenegro’s largest individual merchandise export, generating €73.6 million. Higher power exports did not significantly offset the country’s overall trade imbalance. Imports increased 2.5% to €2.993 billion, compared with export growth of 2% to €372.9 million. The resulting goods trade deficit stood at approximately €2.62 billion, around seven times the value of merchandise exports.
Foreign direct investment figures showed a similar divergence between incoming capital and net inflows. Gross FDI increased 5.5% to €628.1 million, while net inflows fell 2% to €296.6 million, reflecting higher offsetting capital outflows.
Real estate accounted for €319 million, or approximately half of gross FDI. Investment in domestic companies and banks reached €89.1 million, an increase of 31.4%, representing around 14% of total inflows. Serbia was the largest individual source of foreign investment, contributing €121.1 million. Türkiye followed with €52.7 million, while the United Arab Emirates accounted for €49.8 million.
Consumer prices rose 5.2% year on year in September, with average inflation reaching 3.7% during the first nine months.
The labour market recorded stronger indicators. Average employment increased 4.8% to approximately 282,300 workers during January–August, while average net wages reached €1,032, up 2.2% in nominal terms. The combination of tourism growth, higher electricity production and foreign capital inflows contrasts with limited manufacturing expansion and a large dependence on imported goods. Real estate continued to attract a substantial share of investment, while domestic companies and banks received a smaller proportion of total FDI.
The figures point to the importance of expanding investment in manufacturing, logistics and export-oriented services to strengthen productive capacity and reduce reliance on imports, property investment and seasonal tourism.
