Montenegro Economy 2008

Economy - overview:
The republic of Montenegro severed its economy from federal control and from Serbia during the MILOSEVIC era and maintained its own central bank, used the euro instead of the Yugoslav dinar as official currency, collected customs tariffs, and managed its own budget. The dissolution of the loose political union between Serbia and Montenegro in 2006 led to separate membership in several international financial institutions, such as the European Bank for Reconstruction and Development. On 18 January 2007, Montenegro joined the World Bank and IMF. Montenegro is pursuing its own membership in the World Trade Organization as well as negotiating a Stabilization and Association agreement with the European Union in anticipation of eventual membership. Severe unemployment remains a key political and economic problem for this entire region. Montenegro has privatized its large aluminum complex - the dominant industry - as well as most of its financial sector, and has begun to attract foreign direct investment in the tourism sector.

GDP (purchasing power parity):
$26.38 billion (2006 est.)

GDP (official exchange rate):
$2.27 billion (2006 est.)

GDP - real growth rate:
6% (2007 est.)

GDP - per capita (PPP):
$3,800 (2005 est.)

GDP - composition by sector:
agriculture: NA%
industry: NA%
services: NA%

Labor force:
259,100 (2004)

Labor force - by occupation:
agriculture: 2%
industry: 30%
services: 68% (2004 est.)

Unemployment rate:
14.7% (2007 est.)

Population below poverty line:
7% (2007 est.)

Distribution of family income - Gini index:
30 (2003)

Inflation rate (consumer prices):
3.4% (2004)

Investment (gross fixed):
30.5% of GDP NA% of GDP (2006 est.)

Budget:
revenues: NA
expenditures: NA

Public debt:
38% of GDP NA% of GDP (2006)

Agriculture - products:
grains, tobacco, potatoes, citrus fruits, olives, grapes; sheepherding; commercial fishing negligible

Industries:
steelmaking, aluminum, agricultural processing, consumer goods, tourism

Electricity - production:
2.864 billion kWh (2005 est.)

Electricity - consumption:
18.6 million kWh (2005)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
0 kWh (2005)

Oil - production:
0 bbl/day (2004)

Oil - consumption:
450 bbl/day (2004)

Oil - proved reserves:
0 bbl (1 January 2006 est.)

natural gas - consumption:
NA cu m (2005)

Current account balance:
$NA

Exports:
$171.3 million (2003)

Exports - partners:
Switzerland 83.9%, Italy 6.1%, Bosnia and Herzegovina 1.3% (2006)

Imports:
$601.7 million (2003)

Imports - partners:
Greece 10.2%, Italy 10.2%, Germany 9.6%, Bosnia and Herzegovina 9.2% (2006)

Economic aid - recipient:
$NA

Reserves of foreign exchange and gold:
NA

Debt - external:
$650 million (2006)

Market value of publicly traded shares:
$NA

Currency (code):
euro (EUR)

Exchange rates:
euros per US dollar - 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8089 (2004), 0.886 (2003)