Montenegro Industry Sectors

By: EconomyWatch Content   Date: 15 April 2010

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Montenegro has bountiful natural resources, chiefly aluminum and bauxite. This, in addition to adequate water supplies and a climate conducive of agriculture, has resulted in a thriving industry sector in Montenegro. In fact, Montenegro industry sectors have been a key contributor to the nation’s economy since the World War II, primarily with the establishment of Montenegro’s bauxite-alumina-aluminum industry. The sector, however, suffered because of high production costs after the first energy crisis of 1973. Noticeable recovery of the sector began after Montenegro adopted the deutschmark (DM) as its official currency in 1999. The nation officially adopted the Euro in 2002.

 

Montenegro Industry Sectors: Major Contributors

Montenegro industry sectors have been the cornerstone of the nation’s development over the last 5 decades. Metallurgy (aluminum and steel), power and transport infrastructure are the key industries in the nation. Presently, Montenegro industry sectors have the capacity to produce over 1,000,000 tons of bauxite, 100,000 tons of aluminum and 3 billion KWh of power per annum.

 

About 90% of the sector’s produce is exported, thereby helping the country to earn higher foreign exchange.

 

Other significant contributors of Montenegro industry sectors are:

 

  • Wood-processing

  • Textile, chemical

  • Leather and footwear

  • Household appliances

  • Construction and building trade

     

Additionally, Montenegro industry sectors constitute several processing units, which are supportive of the nation’s agricultural sector. This includes fish-processing plants, flour mills, breweries and wine cellars.

 

Montenegro Industry Sectors: Current Scenario

Montenegro, a part of the Federal Republic of Yugoslavia (FRY) till 2006, had a weak economy due to constant wars in the region. However, due to rapid modernization of Montenegro industry sectors and adequate government investments, the Montenegrin economy is expected to become competitive in the global market.

 

Montenegro industry sectors are currently attracting large scale private investment as a result of the nation’s business-friendly investment environment. Montenegro had the lowest corporate tax rate in the Euro region, which was 9% in 2008. According to industry reports, over 85% of the capital value in Montenegro industry sector companies was privatized by mid- 2009.

  


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