Montenegro profile

Demography and Health

Montenegro is a small country with a population of 623,831 as of 2024, ranking 169 in the world, reflecting a limited domestic market and potential vulnerability to migration and demographic shifts. The crude birth rate stands at 11.2 per 1,000 people in 2023, while the crude death rate is 10.1 per 1,000 in 2023, suggesting only modest natural population growth and a tilt toward aging over time. Life expectancy at birth is 77.6 years (2023), indicating relatively strong health outcomes for a middle-income country and a health system capable of supporting broad survivor rates. Under-five mortality is 2.6 per 1,000 live births (2023), a favourable indicator of child health. However, Montenegro faces a negative net migration balance of −1,686 in 2024, with a population total of 623,831; such out-migration can erode the skilled labor force and public funding bases, challenging long-term growth and social services. On the health expenditure front, current health expenditure accounts for 10.9% of GDP (2022), complemented by domestic general government health expenditure per capita, PPP, of 1,956 international dollars (2022), and a physician density of 2.75 per 1,000 people (2022), signaling a reasonably accessible health system but tight fiscal and workforce resources relative to population needs. The suicide mortality rate is 11.3 per 100,000 people (2021), highlighting a need for mental health and social support programs. Population health is also intertwined with nutrition and poverty: the prevalence of undernourishment is 2.5% (2022) and the poverty headcount at national poverty lines is 20.3% (2021), underscoring persistent social vulnerabilities that policy makers must address through inclusive health and social protection measures. Montenegro also exhibits high internet penetration, with 89.8% of the population using the Internet in 2023, a factor that can support health information access, telemedicine, and digital health initiatives in a sparsely populated economy.

Economy

Montenegro's economy is small, open, and market-oriented, with a GDP per capita of 12,935 current US dollars in 2024 and a GDP per capita at PPP of 33,380 international dollars in 2024. This places Montenegro in the lower to middle range of income levels, with substantial room for productivity gains and diversification. The country faces high unemployment for its income level, at 14.9% in 2022, suggesting structural labor market frictions and the need for job-rich growth strategies. Inflation stands at 3.34% in 2024, indicating price stability but leaving some room for macroeconomic management amidst external risks. Montenegro shows a relatively high degree of trade openness: exports of goods and services amounted to 44.9% of GDP in 2024, while imports totaled 67.5% of GDP in the same year, signaling a substantial current account exposure and reliance on external supplies for consumption and investment. The current account balance is negative at −17.4% of GDP in 2024, which points to financing needs from foreign savings, debt, or FDI. Foreign direct investment net inflows reach 7.41% of GDP in 2024, indicating a meaningful external capital inflow that supports investment but also leaving the economy vulnerable to shifts in global investor sentiment. Montenegro’s performance on governance indicators shows mixed signals: regulatory quality is 0.374, while the rule of law is negative at −0.042; political stability is 0.069, and control of corruption is −0.079, all in 2023–2024. Government effectiveness is 0.247, suggesting a moderate ability of the public sector to formulate and implement policies, albeit with room for strengthening the rule of law and anti-corruption efforts. The country also carries a high share of imports relative to GDP (67.5%) and a substantial export share (44.9%), underscoring a highly open economy that benefits from, but must shield against, external shocks and supply chain disruptions.

Trade and Investment

Montenegro demonstrates notable trade openness, with exports of goods and services accounting for 44.9% of GDP in 2024 and imports representing 67.5% of GDP in 2024. This reflects an economy deeply integrated into regional and global markets but also dependent on external inputs for consumption and investment. The country records a current account deficit of −17.4% of GDP in 2024, highlighting external financing requirements and sensitivity to terms of trade and capital flows. Foreign direct investment net inflows reach 7.41% of GDP in 2024, signaling that Montenegro remains an attractive location for foreign capital, potentially for tourism, infrastructure, and services, but also exposing the economy to global capital cycles. Montenegro’s logistics and trade-related infrastructure show a Logistics Performance Index score of 2.5 (out of 5) in 2022, with a ranking of 21, suggesting mid-range efficiency in trade and transport facilitation and room for improvement in customs, infrastructure, and reliability. On the technology side, high-technology exports reach 15.19 million current US dollars (2023), placing Montenegro in a niche category of tech export activity that can be leveraged through targeted innovation policies and export-oriented growth strategies. Overall, the trade and investment landscape points to strong openness and external linkages, balanced by weaknesses in trade logistics and the need to sustain investment amid external shocks and regulatory improvements.

Governance and Institutions

Montenegro’s governance indicators present a mixed but cautious picture. Political Stability and Absence of Violence/Terrorism stands at 0.0693 in 2023, ranking 97, indicating relatively low risk of political upheaval but not free from regional volatility. Regulatory Quality is 0.374 (2023), suggesting a reasonably functioning regulatory framework that can support business activity and investment with further improvements possible. The Rule of Law is negative at −0.0422 (2023), reflecting governance weaknesses in legal institutions, contract enforcement, and judicial independence, while Control of Corruption is −0.0793 (2023), signaling ongoing challenges in corruption control. Government Effectiveness is 0.247 (2023), showing that public institutions have a moderate capacity to implement policy, yet there remains significant scope to enhance efficiency and service delivery. Taken together, these indicators imply that Montenegro has a functioning but fragile governance environment, where strengthening the rule of law and anticorruption efforts could unlock higher investment and more stable growth. The indicators also align with other data showing solid human development indicators (health, life expectancy) but persistent social and economic disparities that policy frameworks must address through credible institutions and transparent governance reforms.

Infrastructure and Technology

Montenegro benefits from strong digital connectivity, with individuals using the Internet totaling 89.8% of the population in 2023, ranking 37th globally and signaling high digital engagement that supports e-government, e-commerce, education, and telemedicine. The Logistics Performance Index (quality of trade and transport-related infrastructure) scores 2.5 out of 5 in 2022, with a rank of 21, indicating mid-level efficiency in infrastructure and border procedures; it implies logistical bottlenecks that can raise trade costs and slow investment, yet also presents a clear target for infrastructure investment and reform. High-technology exports amount to 15.2 million current US dollars (2023), a relatively small but strategic component that Montenegro can expand by fostering human capital, innovation, and integration into regional high-tech value chains. The country’s healthcare and educational assets are supported by a physician density of 2.75 per 1,000 people (2022) and a domestic health expenditure per capita (PPP) of 1,956 international dollars (2022), suggesting capacity to deliver services while highlighting the need for ongoing investment in medical workforce and infrastructure. Overall, Montenegro combines strong digital readiness with opportunities to improve physical and trade infrastructure, leveraging its openness to attract investment and accelerate technology diffusion.

Environment and Sustainability

Environment and sustainability considerations in Montenegro are shaped by a mix of energy transition indicators and social risk factors. Renewable energy consumption accounts for 39.6% of total final energy consumption in 2021, indicating a substantial and growing role for renewables in the energy mix and a potential platform for decarbonization and energy security. The prevalence of undernourishment is 2.5% of the population (2022), reflecting relatively adequate calorie availability but underscoring the importance of nutrition-focused policies amidst rising incomes and consumption. Poverty headcount at national poverty lines is 20.3% (2021), signaling persistent vulnerability for a portion of the population and a need to align environmental and social policies to preserve inclusion while pursuing growth. The country’s negative net migration and demographic aging further interact with environmental pressures, as population concentration and urbanization can shape infrastructure demand and land use. While Montenegro has made notable progress in expanding renewables, the overall external vulnerability reflected in the current account deficit and trade dependence suggests that sustainable development will require diversified energy supply, resilient infrastructure, and inclusive growth strategies to ensure environmental gains translate into broad societal benefits.