The World Bank has raised its forecast for Montenegro’s economic growth in 2026 to 3.3%, an increase of 0.4 percentage points compared with its spring projections, according to its latest Western Balkans Regular Economic Report.
The World Bank expects Montenegro’s growth to accelerate this year, supported by household consumption, investment and a successful tourism season. It also noted that the government has announced measures under its Europe Now programme, aimed at improving living standards and accelerating the country’s convergence with the European Union. As the measures are developed further, their economic and fiscal implications will need to be assessed to ensure fiscal sustainability while strengthening productivity and private-sector investment.
Across the Western Balkans, average economic growth in Albania, Bosnia and Herzegovina, Montenegro, North Macedonia, Serbia and Kosovo is projected to reach 3.1% in 2026, up from 2.6% in 2025. Growth is expected to accelerate to 3.4% in 2027 and remain at that level in 2028.
Despite heightened geopolitical uncertainty and subdued growth among major trading partners, the region has demonstrated resilience and continued to converge with the EU, the World Bank said.
However, the institution warned that resilience alone would not be enough to close the income gap with the EU or generate the high-quality jobs needed across the region. World Bank Western Balkans Director Xiaoqing Yu stressed that a more dynamic private sector would be essential, calling for efficient and predictable regulations and the removal of trade barriers both at borders and within domestic markets.
The report also highlighted challenges facing regional exporters. Only around one-third of new export ventures launched by Western Balkan companies survive their first year, while just 1% to 4% remain in business after five years. Since exporters employ a large majority of manufacturing workers in the region and tend to offer higher wages than comparable companies focused on domestic markets, the World Bank called for reforms to simplify and digitalise procedures, introduce risk-based inspections, recognise harmonised standards and qualifications, and preserve safeguards that serve legitimate public objectives.
