This year, the Index of Economic Freedom released by The Heritage Foundation places Montenegro at 67th in the world rankings.

The Ministry of Finance highlighted that Montenegro’s rise to the 67th position signifies an improvement of 16 spots compared to the previous year.

The current index draws data from the second half of 2023 to the first portion of last year.

“Montenegro’s economic freedom score stands at 63.8, marking it as the 67th freest economy in the 2025 Index. This score is an increase of 4.1 points from last year. Within Europe, Montenegro ranks 33rd out of 44 nations, and its score exceeds the global average,” the announcement stated.

The index this year evaluated Montenegro’s progress based on eight indicators: fiscal stability, public expenditure, judicial efficiency, labor market freedoms, ease of doing business, free trade, tax burden, and monetary freedoms.

“Montenegro has retained its status in financial freedom and government integrity,” the Ministry noted.

The most notable advancement for Montenegro was in fiscal stability, where it received a score of 87.9, which is 48.6 points higher than its score in 2024.

“This improvement results from a decrease in the budget deficit and public debt, alongside effective public financial management. This also reaffirms the country’s macroeconomic stability,” the Ministry stated.

The Index of Economic Freedom recognized that Montenegro improved its results in various areas: public spending rose from 32.4 to 45.2, judicial efficiency from 41.8 to 50.1, labor market freedom from 62.6 to 64.4, ease of doing business from 70.1 to 70.9, 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.

“Progress in public spending indicates that state expenditures have decreased compared to last year. Lower state spending positively impacted this indicator, as excessive public spending may impair economic efficiency,” the statement highlighted.

Additionally, improvements in judicial efficiency stemmed from favorable changes in the judicial system’s operation.

“There remains potential for further improvement in financial freedoms and government integrity, which is anticipated to enhance state administration efficiencies and boost economic activities over the long term,” the Ministry mentioned.

Over the past year, the Ministry of Finance has coordinated efforts among relevant ministries and institutions pertaining to the areas evaluated in the Index of Economic Freedom.

“The enhancement in indicators and overall ranking serves as a validation of the collaborative efforts across institutions to refine the regulatory landscape, improve the business environment, and foster greater market freedoms,” the statement concluded.

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