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Montenegro: Economy Overview

05 February 2010
by Ina Dimireva -- last modified 05 February 2010

Montenegro severed its economy from federal control and from Serbia during the MILOSEVIC era and maintained its own central bank, adopted the Deutchmark, then the euro - rather than the Yugoslav dinar - as official currency, collected customs tariffs, and managed its own budget.


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Economy Overview

The dissolution of the loose political union between Serbia and Montenegro in 2006 led to separate membership in several international financial institutions, such as the European Bank for Reconstruction and Development. On 18 January 2007, Montenegro joined the World Bank and IMF. Montenegro is pursuing its own membership in the World Trade Organization and signed a Stabilization and Association agreement with the European Union in October 2007. On December 15, 2008, Montenegro submitted an EU membership application. Unemployment and regional disparities in development are key political and economic problems. Montenegro has privatized its large aluminum complex - the dominant industry - as well as most of its financial sector, and has begun to attract foreign direct investment in the tourism sector. The global financial crisis is likely to have a significant negative impact on the economy, due to the ongoing credit crunch, a decline in the real estate sector, and a fall in aluminum exports.

GDP (purchasing power parity):

$6.637 billion (2009 est.)
country comparison to the world: 152
$6.914 billion (2008 est.)
$6.431 billion (2007 est.)
note: data are in 2009 US dollars

GDP (official exchange rate):

$4.444 billion (2009 est.)

GDP - real growth rate:

-4% (2009 est.)
country comparison to the world: 175
7.5% (2008 est.)
9.5% (2007 est.)

GDP - per capita (PPP):

$9,800 (2009 est.)
country comparison to the world: 107
$10,200 (2008 est.)
$9,400 (2007 est.)
note: data are in 2009 US dollars

GDP - composition by sector:

agriculture: NA%
industry: NA%
services: NA% (2009 est.)

Labor force:

259,100 (2004 est.)
country comparison to the world: 167

Labor force - by occupation:

agriculture: 2%
industry: 30%
services: 68% (2004)

Unemployment rate:

14.7% (2007 est.)
country comparison to the world: 146

Investment (gross fixed):

30.5% of GDP (2006 est.)
country comparison to the world: 23

Budget:

revenues: NA
expenditures: NA

Inflation rate (consumer prices):

3.4% (2007 est.)
country comparison to the world: 106

Commercial bank prime lending rate:

9.24% (31 December 2008)
country comparison to the world: 93
9.09% (31 September 2007)

Stock of domestic credit:

$NA (31 December 2008)
$1.446 billion (31 December 2007)

Agriculture - products:

tobacco, potatoes, citrus fruits, olives, grapes; sheepherding; commercial fishing negligible

Industries:

steelmaking, aluminum, agricultural processing, consumer goods, tourism

Oil - production:

0 bbl/day (2008 est.)
country comparison to the world: 168

Natural gas - proved reserves:

0 cu m
country comparison to the world: 110

Current account balance:

$-1.102 billion (2007 est.)
country comparison to the world: 132

Exports:

$171.3 million (2003 est.)
country comparison to the world: 183

Imports:

$601.7 million (2003 est.)
country comparison to the world: 181

Debt - external:

$650 million (2006 est.)
country comparison to the world: 153

Exchange rates:

euros (EUR) per US dollar - 0.7338 (2009), 0.6827 (2008), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005)

Source: CIA - The World Factbook

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