Montenegro’s merchandise trade deficit reached approximately €1.92 billion in the first half of 2026, as goods exports declined and imports increased compared with the same period last year. According to first-half trade data, goods exports decreased 7.4 per cent year on year to €261.4 million, while imports increased 3.4 per cent to €2.18 billion. The trade gap widened by around €91.7 million compared with the first six months of 2025. Montenegro’s exports covered only 12 per cent of imports during the period.
The country imported more than eight times the value of goods it exported, reflecting continued reliance on external supply chains and foreign sources of income, including tourism revenues, foreign investment, financial services, transport, remittances and borrowing.
Europe remains dominant trade partner
European markets accounted for €246.6 million, or more than 94 per cent of Montenegro’s exports. Imports from European countries reached €1.72 billion. Serbia remained Montenegro’s largest individual trading partner, but trade flows were significantly imbalanced. Exports to Serbia totalled €70.1 million, while imports reached €372 million, creating a bilateral trade deficit of approximately €302 million.
Bosnia and Herzegovina recorded the second-highest export value, with Montenegro selling goods worth €32.8 million, representing an increase of 38.8 per cent year on year. Exports to Kosovo nearly doubled to €21 million, while shipments to Croatia increased to €6 million.
Exports decline in several key markets
Despite growth in some regional markets, Montenegro recorded lower exports to several established destinations. Exports to Switzerland fell 64.8 per cent to €7.6 million, while shipments to China declined 69.4 per cent to €5.3 million. Sales to Italy decreased 32.6 per cent to €6.5 million, exports to Slovenia declined 25.4 per cent, and shipments to the Czech Republic dropped by almost 78 per cent.
China supplied Montenegro with goods worth €287 million, an increase of 10.6 per cent, making it one of the largest contributors to the overall trade deficit. Imports from Germany reached almost €204 million, followed by Greece with €132.8 million, Italy with €128.6 million, Croatia with €125.1 million, and Bosnia and Herzegovina with €105.5 million.
Manufacturing capacity remains limited
The structure of Montenegro’s trade reflects the country’s limited manufacturing capacity and dependence on imported vehicles, machinery, electrical equipment, fuel, pharmaceuticals, processed food and construction materials. Tourism activity and real estate investment also contribute to import demand, as domestic suppliers often cannot provide goods at the necessary volume, specifications or price levels.
The trade deficit is not directly equivalent to economic weakness, as imports of equipment and machinery may support investment activity, while tourism-related imports can accompany growth in service exports. Montenegro’s merchandise export capacity has not expanded at a comparable pace. Manufacturing production remained broadly stagnant during the first half of 2026, while industrial output growth was mainly linked to electricity generation.
Competitiveness depends on productivity and investment
As a euroised economy, Montenegro does not have its own currency that could depreciate to improve export competitiveness. Future adjustments depend on productivity growth, investment, operating costs, export quality and the development of industries capable of competing in international markets.
