In the initial five months of this year, Montenegro allocated approximately 570 million EUR towards imports, while exports amounted to just over half that figure – 250 million EUR, according to City economic analyst Mirza Mulešković. He emphasizes the necessity to bolster production to reduce import dependency. Montenegro’s primary imports include food and water, while it predominantly exports electricity.
A significant imbalance between imports and exports remains a key challenge for Montenegro’s economy, underscored by Mulešković. He notes that the future reliance on exports hinges on decisions made by policymakers.
“The inflation we are grappling with has been aggravated by our import dependence, resulting in inflation rates higher than those seen in the EU. These figures are disheartening; year after year, we observe a decline in exports instead of fostering robust domestic production that could gain international recognition. This underscores a substantial disparity between imports and exports,” comments Mulešković.
While Montenegro saw a notable surge in electricity exports last year, Mulešković attributes this to market disruptions when prices were unusually high.
“The stabilization of international market prices has led to a more than 60% drop in electricity exports, highlighting Montenegro’s limited development in this sector. We’ve merely capitalized on market fluctuations in a single year,” he explains.
Mulešković advocates for strengthening the domestic economy, boosting production, and educating citizens as key strategies to combat inflation.
“A poignant example today is the absence of our water in cafes. This shouldn’t be the case; instead, the government must devise a strategy to enhance Montenegro’s production capabilities, tapping into our untapped potential to meet domestic market demands,” urges Mulešković.
He concludes by emphasizing that Montenegro must prioritize domestic products and that the government should actively promote economic growth.
