November 2011
Business Environment in Montenegro Prepared by: Mr. Darko Konjević, Montenegro Business Alliance (MBA)
The main purpose of this issue of Business Environment is to present a statistical overview of the current situation in Montenegro regarding foreign trade, the transport sector, and the tourist sector etc. FOREIGN TRADE Total foreign trade of Montenegro for the period January-September 2011 according to the preliminary data of the Monstat was €1,695.1 million which shows growth of 16.5% related to the same period of the last year. Montenegro exported goods in the value of €331.5 million which is growth of 44.7% comparing to the last year and the import was €1,363.6 million with the growth of 11.2% comparing to the same period of the last year. Cover of the import by the export was 24.3% and it is larger then in the same period of the last year when it was 18.7%. This is a sign that export activities in Montenegro are strengthening but we still have not so good export structure. In the structure of the export the main items were ferrous metals (€167.2 million) and iron and steel (€17.9 million). In the import structure the most represented goods are meat and meat products (€53.3 million) and cereals and cereal products (€43.9 million). The main trade partners are Hungary (€64.1 million), Serbia (€60.1 million) and Greece (€36.1 million).
PRICE OF GOODS AND CONSUMER SERVICES The price of goods and personal consumer services in Montenegro increased, on average, by 0.7% in August 2011 in comparison with July 2011. Consumer prices in August 2011, when compared with August 2010, increased by 3.6%, whilst in comparison with December 2010 they were, on average, 3.0% higher. Looking at the main group of products and services that were used by consumers in August 2011, when compared with the previous month, an increase in prices was evident in the following areas: housing (4.0%), health (0.9%), food and beverages (0.4%), alcoholic beverages and tobacco (0.3%), household furnishing and equipment (0.3%), culture and leisure (0.3%), transport (0.2%), other goods and services (0.1%). Decreases in prices were recorded in the following areas: clothes and footwear (0.8%), education (0.2%). Product prices and services remained at the same average levels, as recorded in the previous month, in the following areas: communication, hotels and restaurants.
TOURIST SEASON Due to the tourist season, it is interesting to see figures regarding the transport sector. If we observe the number of passengers who used public transport in August 2011 and compare the figures with the same period last year, we can see decline in the use of road transport (12.9%), of railway transport (32%) and of city transport (2.3%). However, an increase of 5.7% was recorded in the air transport sector. Regarding the transport of goods in August, when compared with last year, the decreases were recorded in the following areas: air transport (82.5%), road transport (50%), sea transport (32.6%). A growth of 3.4% was, however, recorded in railway transport. In Montenegro, in August 2011, recorded 455,185 tourists arrivals which was 5.3% more than in August 2010. They represented a total of 3,556,078 overnight stays which was 12.2% more than in August 2010. Overnight stays made by local tourists represented 11%, while foreign tourists represented 89% of all overnight stays in August 2011. During the first eight months of this year, recorded 1,102,639 tourists arrivals, which was a 7.3% increase in comparison with the same period last year, and 7,375,387 overnight stays which was an increase of 9.5% in comparison with the same period last year.
The number of overnight stays made by local tourists decreased by 2.4%, while the number of overnight stays made by foreign tourists increased by 11.1%. Looking at the statistics for overnight stays made by foreign tourists, the majority of them were made by tourists from Serbia (27.9%), Russia (20.3%), Bosnia and Herzegovina (7.6%), Kosovo (3.4%), Ukraine (3.1%), Albania (2.3%), Poland (2.1%), and other countries. Looking at the statistics for overnight stays, by type of resort, most of them were at seaside resorts (98.8%), at mountain resorts (0.7%), and in the capital city (0.2%), rather than in other tourist venues or at other types of resorts.
Business Environment Macroeconomic Outlook Capital Market Banking Sector Privatization and Investments Economic Freedom Business News In the Spotlight Coming up... Business Statistics and Data Business Registration Statistics (Number of registered companies in Montenegro as of 1st of October 2011)
Joint Stock Company
355
Limited Liability Company
25,269
Part of a Foreign Company
436
General Partnership
62
NGO
293
Limited Partnership
440
Entrepreneur
17,167
Institution
1,092
Other
109
Total
45,223
Tax Rates 17%, 7% and 0%
Value Added Tax Corporate profit tax
9%
Personal income tax Source: Commercial Court
9%
Economy Statistics Selected indicators
2010
2011
Population (625,082 in 2003)
-
625,266
Real GDP (billion)**
3.025
3.275
Real GDP growth
0.5%
2.5%
Inflation rate (average annual CPI) I 2010/ IX 2011
0.8%
-0,1%
Unemployment rate VI 2010/ X 2011
12%
11,39%
Net FDI (million) I-V 2010*/ I-VI 2011*
206
241.8
* Preliminary data (net inflow) ** Estimates made by Ministry of Finance, September 2011 Official currency
Euro
Source: Ministry of Finance, Central Bank of Montenegro, Monstat, Montenegrin Investment Promotion Agency (MIPA), Employment Agency
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