The ministry said the results provide an important indication that measures introduced under Montenegro’s 2024–2026 Programme for Combating the Informal Economy are producing visible effects. The changes are reflected not only in economic indicators but also in the labour market and the behaviour of citizens and businesses, with formal employment becoming more widespread and attitudes towards informal activity changing.
The most visible progress has been recorded in formal employment, which the Ministry of Finance identifies as one of the key outcomes of the programme. More workers in the formal economy means greater employment security, stronger protection of labour rights and a broader foundation for sustainable economic growth. The reduction in informal activity was recorded across all sectors, with construction and hospitality registering the largest declines.
The survey also points to changes in consumer behaviour. The share of employees who frequently or always use payment cards increased from 18% in 2022 to 43% in 2026, while the proportion of citizens who request a fiscal receipt when one is not issued rose from 36% to 43%. At the same time, 81% of employees said they would choose a job with properly paid taxes and social contributions even if it offered a lower salary, compared with 75% in 2022.
Businesses perceive informal operations as carrying a greater risk of detection and penalties. The share of companies estimating the probability of their informal activities being detected at more than 50% increased from 33% to 67%.
The perceived likelihood of the responsible person being penalised rose from 44% to 80%, while the perceived probability that an imposed fine would actually be collected increased from 42% to 77%.
Despite the progress, the Ministry of Finance says further action will be needed in sectors where informal activity remains most pronounced. Transport and agriculture recorded the highest informal economy indices in 2026, while significant regional differences remain. The highest level was recorded in northern Montenegro, at 17.5%, compared with 11.3% in the central region, which also registered the largest decline compared with 2022.
The government plans to build on the current programme with a new 2027–2029 Programme for Combating the Informal Economy. Its priorities will include further reducing the space for informal business, strengthening tax compliance, protecting employees, expanding digital and cashless payments, increasing inspection oversight and ensuring more equal conditions for businesses operating in the formal economy.
Preliminary figures indicate that implementation of the 2024–2026 programme will reach close to 80% by the end of this year. The Ministry said the programme involves relevant institutions and stakeholders and is being implemented in line with European Commission requirements and Montenegro’s commitments under its Reform Agenda.
The latest findings suggest that Montenegro has made measurable progress in moving economic activity into the formal sector, while the next phase of reforms will focus on ensuring that formal employment and compliant business practices become the standard across the economy.
