HERITY: Montenegrin Economy Shows Moderate Freedom Amid Significant Challenges of Corruption and Political Instability
According to the Heritage Foundation’s Index of Economic Freedom, Montenegro ranks 67th globally, improving by 16 positions from the previous year.
The 2025 index categorizes Montenegro’s economy as “moderately free.”
The Heritage Report notes that Montenegro’s economic freedom index stands at 63.8.
“This marks an increase of 4.1 points from last year, placing Montenegro 33rd out of 44 countries in Europe. While the country’s index exceeds the global average, it falls short of the regional average,” the report states.
The report suggests that Montenegro’s long-term economic growth is hindered by ineffective anti-corruption measures and a lack of institutional commitment to robust property rights protection.
“The legal framework continues to be vulnerable to political interference. Major issues include political instability, corruption, and a deficiency in sustainable investments,” the report adds.
It emphasizes that the pace of reform is slow and that rigid labor regulations are hampering more dynamic job creation.
Moreover, there are ongoing inflationary pressures, with an overall rise in the price level.
This year’s index evaluates countries based on eight indicators: fiscal stability, public spending, judicial efficiency, labor market, ease of doing business, free trade, tax burden, and monetary freedom.
In terms of fiscal stability, Montenegro received a score of 87.9, representing an improvement of 48.6 points from 2024.
The Ministry of Finance attributes this progress to a reduction in the budget deficit and public debt, alongside effective public financial management.
“This progress is a solid confirmation of the country’s macroeconomic stability,” stated officials from the ministry.
According to the ministry, Montenegro also recorded better scores in public spending (increased from 41.8 to 64.4), free trade (from 78.8 to 79.6), tax burden (from 88.3 to 88.7), and monetary freedom (from 70.7 to 70.9).
“Montenegro has maintained its position regarding financial freedom and government integrity,” the ministry concluded.