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Political and Economic Situation

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Political and Economic Situation Published on Eurydice (https://eacea.ec.europa.eu/national-policies/eurydice) Political situation Montenegro is a parliamentary democracy in which power is divided into executive (the Government), legislative (the Parliament) and judicial. Montenegro officially declared its independence in 2006, and the first parliamentary elections in the independent Montenegro were held in the same year. So far, four parliamentary elections have been held. The Constitution of Montenegro [1] which is in the effect was adopted on 22 October 2007. At the last parliamentary elections which were held in 2016, the following parties/political coalitions won seats in the Parliament: Democratic Party of Socialists (in coalition with Liberal Party - 41% / 36 seats), Democratic Front (20% / 18 seats), the Key Coalition (11% / 9 seats), Democratic Montenegro (10% / 8 seats), Social Democratic Party (5% / 4 seats), Social Democrats (3% / 2 seats), Bosniak Party (3% / 2 seats), the coalition “Albanians resolutely” (1.30% / 1 seat) and the Croatian Civic Initiative (0.5% / 1 seat). The Prime Minister of Montenegro is a member of Democratic Party of Socialists, and the Government comprises ministers who are members of: Democratic Party of Socialists, Social Democrats, Bosniak Party, Croatian Civil Initiative and Democratic Union of Albanians. At presidential elections held in April 2018, the candidate of Democratic Party of Socialists won the majority of votes. The President of Montenegro is elected for a period of 5 years. Economic situation Gross Domestic Product of Montenegro in 2005 amounted in total 1 815 million EUR. Gross Domestic Product per capita in 2005 was 2 912 EUR. Estimated growth of Gross Domestic Product at constant prices in 2005 was 4.2%. Montenegro has made significant progress in its transition towards the market economy. Real Gross Domestic Product (GDP) growth has averaged 4.6 percent during 2006-2010 with inflation in the low single digits (below 4 percent). These numbers compare well with the countries that joined the EU in May 2004 (EU8), as well as the EU15. GDP growth in 2006-2008 averaged nearly 9 percent per annum, but 2009 was marked by a severe recession due to the global economic and financial crisis, with a GDP contraction of 5.7 percent. /national-policies/eurydice/file/grafiko-1_enGrafiko 1 /national-policies/eurydice/file/table-1-0_enTable 1 Source: MONSTAT [2] Gross domestic product of Montenegro amounted to 3 458 million EUR in 2014, whereas in 2013 it amounted to 3 362 million euro. Gross domestic product per capita in 2014 amounted to 5 561 EUR, whereas in 2013 it was 5 412 EUR. /national-policies/eurydice/file/table-1-gross_enTable 1 Gross Source: MONSTAT [2] Gross domestic product of Montenegro in 2015 was 3 655 million EUR, while in 2014 it was 3 458 million EUR. Gross domestic product per capita in 2015 was 5 826 EUR and for 2014 was 5 561 EUR. /national-policies/eurydice/file/table-1-domestic_enTable 1 domestic Source: MONSTAT [2] Gross domestic product of Montenegro in 2016 was 3 954 million EUR, while for 2015 it was 3 655 million EUR. Gross domestic product per capita in 2016 was 6 354 EUR and for 2015 was 5 873 EUR. Percentage allocation for education, relative to GDP: 2010 2011 2012 2013 2014 2015 2016 4.7 % 4.7% 5.0% 4.6% 4.4% 4.3% 4.3% Source: MONSTAT [2] /national-policies/eurydice/file/lecel-education_enlecel of education /national-policies/eurydice/file/level-education_enlevel of education Source: MONSTAT [2] In accordance with Census 2011 [3] total number of population 15 years of age and over, there are 260 277, i.e. 52% of persons with secondary school completed. However, of that number, there are 27 285 persons currently attending the university. There is 17% of population in Montenegro with higher or high school attainment, either by the old or by the new - Bologna system of education. The average age of population with secondary school, and currently not attending school is 44 years, and the average age of persons with primary school as the highest level of education completed is 56. Key sectors of Montenegro’s open economy—and potential growth engines over the longer term—include tourism, service, and other knowledge-driven industries. Montenegro’s energy sector could also become an important source of growth and exports provided that environmental impacts can be adequately contained. The dissolution of the political union between Serbia and Montenegro in 2006 led to separate membership in several international financial institutions, such as the European Bank for Reconstruction and Development. In January 2007, Montenegro joined the World Bank and the IMF. Montenegro became the 156th member of the World Trade Organization in December 2011. The share ofSmall and Medium Enterprises (SMEs) has constantly increased but these firms remain focused on the domestic market and need to become more competitive. An important mechanism for increasing competitiveness encompasses improvements in the efficiency and quality of higher education and the strengthening of the links between research and innovation and business. In December 2017 the Government of Montenegro adopted the document Development Directions of Montenegro 2018-2021 [4]. This document is adopted as a result of significant changes of conditions and framework for implementing economic and development policies at national, regional and global level, as well as due to the need for the time frame extension. The document relies on the Development Directions of Montenegro 2015-2018 and the Development Directions of Montenegro 2013-2016. DID YOU FIND WHAT YOU WERE LOOKING FOR? YES NO Contact * Message * Leave this field blank Source URL: https://eacea.ec.europa.eu/national-policies/eurydice/content/political-and-economic-situation-51_en Links [1] http://www.skupstina.me/images/dokumenti/ustav-crne-gore.pdf [2] https://www.monstat.org/ [3] https://www.monstat.org/userfiles/file/popis2011/Saop%20obrazovanje11%2006%202012%20ENG%20PDF.pdf [4] http://www.gov.me/ResourceManager/FileDownload.aspx?rId=297334&rType=2.
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