Boris Mugoša, head of the Social Democrats (SD) parliamentary club and European Union representative, highlighted a worrying decline in the quality of foreign investments in Montenegro.
Commenting on recent data from the Foreign Investors Council (SSICG) covering the past six years, Mugoša pointed out a significant deterioration in the structure of foreign investments. He emphasized a sharp drop in productive investments—those directed to enterprises and the real economy—over the last five years, alongside a growing share of investments in real estate, which do not contribute to long-term economic growth or value creation.
In 2018, nearly 40% of foreign investments were in productive sectors, while 21% went to real estate. Last year, the situation reversed, with 51% of investments in real estate and only 12.8% in productive sectors.
Mugoša noted that productive investments in the past year were 70% lower than in 2018.
He attributed this decline to an unpredictable business environment marked by frequent regulatory changes, selective enforcement, weak rule of law, institutional and political instability, lack of strategic planning, and inefficient public administration—all factors undermining investor confidence and reducing productive foreign investments.
