Montenegro recorded a further widening of its foreign trade deficit in 2025, driven by a strong increase in imports and a simultaneous decline in exports. According to official trade data, total exports amounted to approximately €572 million, representing a year-on-year decrease of about 7 percent, while imports increased by roughly 9.3 percent, further deepening the already pronounced external imbalance.
As a result of these opposing trends, Montenegro’s export-to-import coverage ratio deteriorated, underlining the country’s continued structural dependence on foreign goods. Imports exceeded exports by several multiples, reinforcing a long-standing pattern in which domestic production and export capacity remain insufficient to offset demand for imported energy, consumer goods, food, machinery, and industrial inputs.
The contraction in exports reflects the narrow structure of Montenegro’s export base. Outbound trade remains concentrated in a limited range of products, including electricity, mineral products, and a small volume of manufactured goods, leaving overall export performance vulnerable to price fluctuations, seasonal effects, and changes in regional demand. At the same time, import growth has been supported by strong domestic consumption, investment activity, and high dependence on imported fuels and construction materials.
This widening trade gap has direct implications for Montenegro’s external balances. Although the country partially offsets its goods trade deficit through services—most notably tourism revenues—the persistent shortfall in merchandise trade increases reliance on external financing, foreign direct investment, and inflows related to the tourism season. Given Montenegro’s unilateral use of the euro, adjustment mechanisms through exchange-rate policy are unavailable, placing greater pressure on structural reforms and productivity improvements.
From a macroeconomic perspective, the data highlight the limitations of the current growth model. High import intensity, combined with a modest and undiversified export sector, constrains the economy’s ability to generate sustainable external balances. While tourism remains a critical source of foreign exchange, it does not substitute for a broader, more resilient export base in goods and higher value-added production.
Looking ahead, the deepening trade deficit reinforces the need for policies focused on export diversification, domestic production capacity, and selective import substitution, particularly in energy, agri-food processing, and light manufacturing. Without such adjustments, Montenegro’s foreign trade imbalance is likely to remain a structural feature of the economy, leaving it exposed to external shocks, commodity price volatility, and shifts in regional demand.
