Montenegro’s merchandise trade deficit reached approximately €2.30 billion in the first seven months of 2026, as imports increased while exports declined. Total merchandise trade rose 2.5% year on year to €2.921 billion, entirely due to higher imports. Imports grew 3.4% to €2.608 billion, while exports fell 4.4% to €312.9 million. Export coverage of imports dropped to 12.0%, from 13.0% a year earlier.
Imports Driven by Investment and Consumption
Machinery and transport equipment accounted for around €623.7 million of imports, including €242.5 million in road vehicles. The import structure reflects both investment and domestic consumption. Montenegro relies heavily on foreign supplies of construction materials, equipment, fuels, food, vehicles and consumer goods. Tourism adds to import demand because hotels, restaurants and other businesses require imported food, furniture, equipment, vehicles and technology.
Exports Remain Concentrated
Goods exports totalled only €312.9 million through July. Mineral fuels and related products were the largest export category at approximately €99.3 million, including around €70.5 million from electricity.
Electricity offers export potential through Montenegro’s regional connections, including the cable to Italy, but output and export volumes can be affected by hydrology, regional prices and domestic consumption. Manufacturing remains small, while food processing is below potential. Technology and professional services can contribute to exports but are not included in merchandise trade figures.
Serbia Remains Montenegro’s Main Trading Partner
Serbia was Montenegro’s largest export destination, purchasing around €78.7 million of goods. At the same time, Montenegro imported approximately €449.4 million from Serbia. China supplied about €338.2 million of imports, while Germany accounted for approximately €239.7 million.
Tourism and FDI Finance Part of the Gap
Tourism provides an important source of foreign-currency income, helping Montenegro finance its large merchandise deficit. However, tourism also increases demand for imported goods. Foreign direct investment is another major financing source. Property investment reached approximately €237.7 million in the first half of 2026. Real estate purchases bring euros into the country but do not necessarily create future export revenues and can themselves generate additional demand for imported materials and equipment. Investment in Montenegrin companies can instead expand productive capacity and support future exports.
Energy and Logistics Offer Export Opportunities
Renewable electricity is among the sectors with potential to increase Montenegro’s export capacity. The country has hydro, wind and solar resources and regional electricity connections. The Port of Bar could also support greater logistics activity if transport connections improve. The Bar–Belgrade railway requires substantial modernisation, while road corridors remain incomplete.
The proposed Adriatic–Ionian corridor could strengthen regional logistics if integrated with the port, rail network and wider transport infrastructure.
Euroisation Limits Adjustment Options
Montenegro’s use of the euro removes conventional exchange-rate risk but also prevents the country from using currency depreciation to improve export competitiveness. Adjustment therefore depends on productivity, wages, investment and domestic production. The latest trade figures show imports rising 3.4% while exports fell 4.4%, leaving Montenegro with a €2.30 billion goods deficit and an import-coverage ratio of just 12.0%.
