Economic momentum as Montenegro’s GDP surges by 6.9%

In the second quarter of 2023, Montenegro’s economy demonstrated robust growth, signifying positive implications for the nation’s economic stability and development. According to data released by the statistical office, Montenegro’s gross domestic product (GDP) experienced a substantial real growth of 6.9% year-on-year. This growth trend follows a previous quarter with annual expansion at 6.1%, showcasing a consistent upward trajectory.

GDP growth

During the second quarter of 2023, Montenegro’s GDP reached 1.689 billion euros ($1.815 billion) at current prices, marking a noteworthy increase from 1.423 billion euros recorded during the same period in 2022, as indicated by preliminary data provided by the statistical office.

Growth drivers

The key components contributing to this economic expansion include a notable rise in final consumption, which amounted to 1.542 billion euros during the period under review. This represents a considerable increase from the 1.356 billion euros recorded in the second quarter of the previous year. Additionally, Montenegro’s trade performance indicated positive dynamics, with exports totaling 786.8 million euros and imports amounting to 1.189 billion euros in the April-June 2023 timeframe.

It is essential to note that this economic growth figure should be considered in the context of the corresponding period in 2022 when Montenegro experienced an exceptional real GDP growth of 12.7%. This comparison underscores the ongoing positive momentum in the country’s economic performance.

Breaking down the structure of quarterly GDP at current prices, it is evident that final consumption expenditure, encompassing both household and government spending, played a substantial role in driving economic growth. Additionally, gross fixed capital formation contributed positively to the economy. Meanwhile, changes in inventories and net export/import exhibited specific trends, with changes in inventories experiencing growth and net export/import demonstrating a contraction.

Montenegro’s economic progress in the second quarter of 2023, marked by strong GDP growth and improved trade performance, suggests a positive outlook for the nation’s economy. This growth trend may enhance economic stability and contribute to the country’s overall development in the coming quarters.