MBO Summary Welcome to the thirty fifth edition of Montenegro Business Outlook. MBO is quarterly publication of pertinent economic indicators presenting a comprehensive view of Montenegro’s business environment. This publication is intended to serve international business people seeking investment opportunity in Montenegro. We welcome your comments.
Business Environment: The business environment in 2010 was characterized by problems related to a lack of liquidity, a lack of financial resources, and a slowdown in the Montenegrin economy. The major laws that influenced business, which were adopted during the fourth quarter, were Law on Excise, the Law on Financing for Local Governments, the Labor Law and changes in the level of the minimum wage. Macroeconomic Outlook: The fourth quarter of 2010, at a macroeconomic level, was the one in which recovery from the financial crisis was seen. Inflation is still at a very low level, and in the labour market only slightly positive trends can be seen so far regarding any increases in wages. Although a decrease was recorded in comparison with the same period last year, the FDI volume is at quite a high level considering the absence of any major privatization takeovers in 2010 (unlike those seen in 2009). Banking Sector: Total bank assets amounted to €3,007.5 million at end-August 2010, €2,907.6 million at end-September and €2,917.6 million at end-October 2010. In comparison with last year, total bank assets during these three months were lower. Total bank deposits amounted to €1,786.2 million at end-October 2010, thus showing a month-to-previous-month growth of 0.2%. At end-September 2010, when compared with August, the total amount of deposits had decreased by 4.5%. Privatization and Investments: Montenegro still has not used all of its potential for attracting new investment. There are three big projects that lie ahead: the construction of a highway, the construction of hydropower plants on the River Moraca and the construction of a new tourist resort on the Lustica peninsula. Additionally, the World Bank’s new strategy envisages a large amount of credit support to Montenegro in the areas of agriculture, health, higher education and science, and in the remediation of environmentally problematic issues. EBRD and IFC also plan to finance some large projects in Montenegro: a power network upgrade, the construction of a highway bypass in Podgorica and to make improvements to the water supply system in the municipality of Danilovgrad. Economic Freedom: According to the report ‘Economic Freedom of the World’ published by the Heritage Foundation and the Wall Street Journal, Montenegro’s economic freedom score is 62.5, making its economy the 76th freest in the 2011 index. Its score has decreased by 1.1 points since last year, primarily because of an explosion of growth in government spending. Montenegro ranks as 34 out of 43 countries in the European region, and its overall score is above average in the world. MBO Interview: Mr. Alexander Avanessov, UN Resident Coordinator and UNDP Resident Representative to Montenegro.
Kralja Nikole 27a/4, Business Center “Čelebić”, Podgorica, Montenegro Phone/Fax: +382 (0) 20 633-855, +382 (0) 20 620-611 web site: www.ceed-consulting.com e-mail: info@ceed-consulting.com
Capital Markets: Stock exchange in Montenegro began to operate as one in January 2011 after a technical merger of the Nex stock exchange and the Montenegro stock exchange at the end of December 2010. Following this event, the NEX Stock Exchange ceased to exist as a legal entity. In the Spotlight: Montenegro Becomes an EU Candidate Country. Expert’s opinion: Montenegrian Stock Exchange; Dejana Šuškavčević, MSc, Chief Executive Officer in Montenegroberza. We Introduce: Climate change and global warming; Slavica Nikolić, MSc, CEED Consulting.
Montenegro General Info Area Position Length of border Coast line Length of beaches Climate Average temperatures of air Maximum sea temperature Average num. of sunny days Major Cities Albania Croatia Serbia Bosnia and Herzegovina Sea border
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Geographic information 13,812 km² 41º52’ - 43º42’ lat., 18º26’ - 20º22’ long 614 km 293 km 73 km Mediterranean 27.4Co (summer) 13.4C o (winter) 27.1Co 240 Podgorica (Capital), Niksic, Bijelo Polje Border Crossing Bozaj Debeli brijeg Kula,Vuče, Dračenovac, Dobrakovo,Čemerno, Ranče, Bijelo Polje Vilusi, Vracenovici, Scepan Polje, Metaljka ports and piers: Bar, Kotor, Budva and Zelenika
Population Population in country 620,211 Montenegrin population in foreign countries 54,816 Total population 675,027 Number of households 191,047 Source: Census 2003 Transportation Airports Podgorica and Tivat Bar (line to Italy: Bar-Bari, Bar-Ancona) and Kotor Ports (line to Italy: Kotor-Barleta) Railways Bar – Beograd and Podgorica- Niksic Total railways length 249 km Total highway lenght 5,174 km National Parks Durmitor 39,000 ha Biogradska gora 5,650 ha Lovcen 6,220 ha Prokletije 21,647 ha Skadar Lake 40,000 ha