Montenegro’s external trade position deteriorated in 2025, as strong import growth combined with declining exports deepened the country’s structural trade imbalance despite an overall expansion in trade activity.
Total foreign trade reached €5.03 billion in 2025, marking a 7.2% increase year-on-year, reflecting stronger economic activity and rising import demand. However, this headline growth was driven almost entirely by imports, while export performance weakened.
Exports declined by 6.9% year-on-year to €572.3 million, highlighting persistent limitations in Montenegro’s export base. At the same time, imports increased by 9.3% to €4.46 billion, widening the gap between domestic demand and external supply capacity.
As a result, the trade deficit expanded significantly, with export coverage of imports falling to just 12.8%, down from 15.1% a year earlier. This level underscores one of the most pronounced structural imbalances in the region, with Montenegro heavily dependent on imported goods to sustain consumption and investment.
The composition of trade reflects this asymmetry. On the export side, the structure remains narrow and commodity-driven. Mineral fuels and lubricants accounted for €136.9 million, with electricity exports alone contributing €95.5 million, making energy the single largest export category. This concentration highlights the limited diversification of Montenegro’s export sector and its sensitivity to energy production and pricing dynamics.
In contrast, imports are dominated by capital goods and consumer demand. Machinery and transport equipment reached €1.11 billion, with road vehicles accounting for €420.2 million, pointing to sustained demand for investment goods, infrastructure inputs and consumer imports. This import structure is consistent with an economy reliant on external supply chains for both industrial development and domestic consumption.
Trade relationships remain regionally anchored but increasingly diversified. Serbia continues to dominate as Montenegro’s largest trading partner on both sides of the balance sheet, with €151 million in exports and €777.8 million in imports, reinforcing deep economic integration between the two markets.
Beyond the region, China and Germany are key sources of imports, with €549.4 million and €453.1 million respectively, reflecting Montenegro’s dependence on global manufacturing supply chains, particularly for equipment, vehicles and industrial goods.
Regional integration frameworks also play a central role. The largest share of trade is conducted with CEFTA countries and the European Union, underscoring Montenegro’s positioning within regional and European economic networks, even as its trade balance remains structurally negative.
The overall picture is one of an expanding but imbalanced trade model. While total trade volumes are growing, the divergence between imports and exports is widening, driven by strong domestic demand and a limited export base.
This dynamic reinforces a familiar structural constraint. Montenegro’s economic growth continues to depend on external supply, while its capacity to generate export revenues remains concentrated in a small number of sectors. Without diversification of exports and scaling of industrial capacity, the trade deficit is likely to remain a defining feature of the economy.
