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  Montenegro
HOME >> COUNTRY REPORTS >> Montenegro
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Official name Republic of Montenegro
Capital  Podgorica
Population  684,736
Currency  euro(EUR)
Official language   Serbian
GDP  $3,800
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  STRENGTHS
  WEAKNESSES

Inflation is moderate.

Tourism is a strategic sector of the country and is developing fast.

The quality and diversity of its natural and anthropological resources make Montenegro one of the most attractive regions in the Mediterranean

The use of the Euro as legal currency

A corporate tax rate of 9 percent

A start-up time of four days for new businesses.

Businesses located in a free trade zone benefit from customs extraterritoriality and are exempted from taxes and duties.

On the real estate market prices are still low and they are in a growing trend and, as Montenegro is a developing market, there are many niches that can be speculated.

Unstable political past, poor infrastructure and lack of budget airline access means it compares unfavorably with some other destinations.

Institutionalized corruption that poisons private sector development by impeding simple business transactions and handicapping businesses’ ability to respond to the market.

Montenegro’s expenditure on research and development is low—0.4 percent of GDP—but increasing from near zero several years ago.

Sovereign risk has eased thanks to improved fiscal performance and the ongoing foreign-debt restructuring process, ajor imbalances have nonetheless persisted.

Inflation has reappeared and external accounts are still in a deteriorated state despite a reduced trade deficit, attributable mainly to a slowdown of imports.

The political situation has been shaky even if the government has strengthened its position by engaging in negotiations with the European Union on a stabilization and association agreement.

Challenges to the country's territorial integrity have persisted as has the risk of early elections and coming into power of populist and ultra nationalist parties.

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