Montenegro is a very small country, with an area of 13,812 km2 and 625,266

inhabitants according to the census from 2011. The official currency since 2002, the
euro, even though Montenegro is not a member of the Eurozone.
The capital and also the largest city is Podgorica, while Cetinje has the status
of the capital. In a referendum in 2006, citizens of Montenegro voted independence
from the state union of Serbia and Montenegro. Independence was formally
proclaimed on June 3 2000 year.
Montenegro is a member of the United Nations, the Organization for Economic
Cooperation and Development, and the Council of Europe. Since 2010, Montenegro
is a candidate for membership in the European Union, and a potential candidate for
NATO.
The main industrial activities are the processing of tobacco, salt and aluminum.
Tourism is very important for the economy of Montenegro.
Montenegro is the first country to be declared an ecological state in 1991 year. In
Montenegro there are five national parks: Durmitor,Biogradska gora, Skadar Lake,
Lovcen and Prokletije.
Montenegro is the today one of the most developed and stable countries in the
Balkans. Country with a small, but dynamic economy. During the last ten years, there
has been a great progress measured by increasing the national income per capita, and
now has the highest per capita income among the six countries of Southeast Europe.
Economic Regulation of Montenegro is mostly harmonized with European
Union rules. Low tax rates, free trade regime and the transfer of capital, are things
which make Montenegrin economy attractive for foreign investment. Montenegro's
economy is based on small and medium enterprises, which generate more than half of
Gross domestic product (GDP).
Montenegro is a country that has developed south and the less developed North.
Unemployment is 18% and is especially present in less developed municipalities in
the northern region.The average net salary in Montenegro is 480 euros, the average
pension stands at 60% of average earnings.
Inequality of income distribution, and GINI ratio is lower than the average for
Europe and Central Asia. Montenegro became a member of the World Trade
Organisation in 2011.
Montenegrin Economy through trade flows, investments and tourism,is mainly
associated with the immediate environment and the European Union. Traffic is
associated with the region and the world through two international airports, rail, sea
transport and not very good roads.
In Relations with foreign countries Montenegrin economy recorded a deficit of
over 20% of GDP. The deficit was financed by substantial inflows of capital from

foreign countries. government spending at the level of 45% of GDP. Tax rates are low
and amount to 9% and 19%.
In the years after independence a budget surplus has been recorded.But
financial global crisis in 2008 caused a delay in the inflow of capital and the
problems in the banking sector, which has pushed the economy into recession and the
budget deficit. As a consequence of the economic crisis, public debt increased to 56%
of the total GDP.
However, Despite the economic crisis, Montenegro has made an impressive
progress in transition in many areas. We carried out a number of reforms in the public
and financial sector, due to which Montenegro progressed by 46 places, and is now
located at 44th place among 189 ranked economies in the world.

Kasumovi Lejla
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