Montenegro

A former Yugoslav republic, Montenegro has made significant headway in transitioning to an open-market economy through comprehensive structural reforms and the privatization of nearly all state-owned enterprises. Montenegro business environment benefits from low labor costs, a favorable corporate tax rate and its strategic location in the heart of the Balkans. Additionally, while not a member of the EU, Montenegro has adopted the euro as its domestic currency. Tourism, which accounts alone for roughly a quarter of the GDP, hydropower and agriculture are the primary drivers of the economy.

Still, while the government welcomes foreign investors, political instability and corruption, a sizable informal economy, and a shortage of skilled labor, are persistent issues. Furthermore, Montenegro grapples with one of the highest public debt-to-GDP ratios in the region. The economy remains scarcely diversified, weakening the export base.