“The ease of doing business index in Montenegro in 2021 was 7, and it was the highest since the survey was conducted” according to the latest edition of the “White Book” prepared by the Montenegrin Foreign Investors Council (MFIC).

MFIC has published the 11th edition of the White Book, their key document, in which foreign investors, based on their perception, view the business environment and point out the main challenges they face in Montenegro.

The index ranges from one to ten, where “one” represents the worst grade and “ten” is the best. The result for last year shows a significant increase compared to the year before when it was 6.4.

In the case of Montenegro, sectors such as tourism, telecommunications, information and communication technologies, and trade, reported the most positive developments, and thus had a more significant impact on the growth of the overall index. Last year (2021) saw an increase in all individual sector indices.

The largest index in 2021 has the telecommunications and ICT sector – 7.7. The tourism and trade sectors recorded the highest growth, at 0.8 points, transport and logistics at 0.6 points, banking and finance at 0.4 points, and the production and energy sector at 0.3 points. For four categories – real estate development, taxation, corporate governance, and the rule of law, a lower score was recorded compared to the previous year, while for one area we have the same result – the labor market and employment.

MFIC also made certain recommendations regarding the need for more efficient implementation of reforms and further steps to improve tax procedures, as well as significant modernization of the work of cadastral and notary services, especially in terms of meeting deadlines. It is necessary to reduce costs, but also introduce modern electronic systems, which would greatly shorten the registration process. It is also necessary to create the basis for further infrastructure investments and the implementation of measures to increase freedom and flexibility in the labor market.

MFIC President Christoph Schoen said last year was very successful in terms of economic recovery. Although tourism was the main reason for the historical recession of over 15 percent in 2020, it was the driver of the economic recovery of almost 11 percent in 2021. It is obvious that the Montenegrin economy has progressed better than the countries in the region, but the Russian invasion of Ukraine will, directly and indirectly, affect our economy and society. “Expected growth rates of gross domestic product (GDP) are highly questionable,” Schoen warned.