Economy

Compared with many nations, particularly those of its size around the world, Montenegro has quite an impressive economy that is now primarily focused on the service sector. In the past, the nation devoted itself primarily to the pursuits of the industrial era such as the processing of metals, wood industry in the country’s vast forests and the production of textiles – all common elements of a thriving economy in those days. The rapid evolution of Montenegro’s economy to one that is fully in swing with the times has impressed a huge number of people around the world and this is clearly evidenced by the fact that in 2008, while the world was in a deep recession that affected nearly every nation on the planet, Montenegro managed to earn for itself more foreign investments than any other nation in Europe. This is particularly impressive in light of the severe reluctance of investors to take on any new projects during such dark and uncertain times.

According to the International Monetary Fund, a global financial body, the Gross Domestic Product (GDP) of Montenegro was nearly $4.3 billion in 2008. While recessionary expansion is logically lower than during boom times, growth continues and in 2007 alone, Montenegro’s economy expanded by over 10% in terms of the GDP. Due to its geographic location, this country learned long ago the value of strong trade ties with other nations and relies on those exchanges to increase its own economy while providing products and services to the rest of the world. The service sector in Montenegro is huge and makes up nearly three quarters of the country‚Äôs overall GDP, with industrial and agricultural activities following. In terms of contributing to the economy as a whole, the Podgorica Aluminum Plant is the company that is largest in the nation and also performs the most export. Steel and food processing make up other big portions of the economy.

Looking towards the future, Montenegro has made tourism a strong focus for its development plans, having found huge success with visitors coming from countries around the world to enjoy the scenic beauty that it offers. In fact, ecosystem friendly ‘green travel’ has been a real draw and lured in tourists from both the United Kingdom and Russia who have settled in Montenegro due to its attractive pricing and outdoor splendor. With nearly a million visitors per year visiting the nation, visitors are clearly an important part of the Montenegrin economy which has caused the leaders of the economy to come together and declare that in the years to come, they wish to transform this small Balkan nation into an elite tourist destination well known across the globe. Joining the European Union will be a major step for the country and as the nation’s infrastructure continues to be upgraded, support for a strong visitor based economy grows. With its gift for gaining the attention and cooperation of foreign investors, Montenegro is expected to become a premiere destination for vacationers coming in from around the world, building on the strong reputation it has already established for itself.

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