Montenegro’s Top 100 Companies: Economic Growth Masks Structural Weaknesses
Montenegro’s economy has grown strongly since independence, but remains heavily dependent on consumption, tourism, trade, construction and real estate, while production and exports have lagged behind. This structure is also reflected in the corporate sector, where retail companies dominate the ranking of the country’s 10 largest companies by revenue
Ivan Ivanovic*
Two decades after regaining independence in 2006, Montenegro has nearly quadrupled its nominal GDP, while employment, wages and living standards have risen significantly. But the economy remains heavily reliant on consumption, tourism and imports, with domestic production, diversification and exports still lagging behind.
Nominal GDP increased from €2.17 billion in 2006 to around €8.17 billion in 2025. Adjusted for inflation, however, the economy grew by about 65 per cent in real terms.
At the same time, net public debt rose more than sixfold, from €701 million to €4.38 billion, showing that economic expansion was accompanied by a sharp increase in state borrowing.
Average wages and pensions have risen by around 300 per cent since independence, although much of the increase was eroded by cumulative inflation of 89.9 per cent. The average net monthly salary climbed from €246 to €1,040, while the average pension rose from €143 to €560.
Over the past decade, Montenegro’s economy has expanded at an average annual rate of around 3.5 per cent.
Growth was relatively stable between 2016 and 2019 before the COVID-19 pandemic exposed the country’s heavy dependence on tourism and international mobility. GDP contracted by almost 15 per cent in 2020, one of the steepest declines in Europe.
The rebound was equally sharp. GDP grew by 13 per cent in 2021, followed by 7.7 per cent in 2022 and 6.5 per cent in 2023. Over the past two years, growth has slowed to around 3.2 per cent.
Consumption, Not Production
Tourism remains central to Montenegro’s economic model, with some estimates putting its overall contribution to the economy at as much as 20 per cent.
Tourism revenues rose from €288 million in 2006 to €1.48 billion last year, more than five times the level recorded in the year of independence.
Goods exports have performed far less impressively. They were worth €441 million in 2006 and €572 million last year – a nominal increase of just 29 per cent. Adjusted for inflation, their value was lower than two decades ago.
While Montenegro’s economy has expanded substantially, its structure has not become more production-oriented. Industry’s share of GDP fell from nearly 15 per cent to 8.3 per cent, while agriculture declined from 5.7 to 3.5 per cent. Services, meanwhile, increased their share from 57.6 to almost 64 per cent.
Trade, hospitality, construction and real estate remain among the main drivers of economic activity.
Wholesale and retail trade has become an increasingly important pillar of the economy, illustrating the extent to which growth is driven by consumption rather than domestic production. Gross value added generated by trade rose from around €479 million in 2016 to €1.19 billion in 2025, an increase of about 149 per cent in nominal terms.
According to the Statistical Office, wholesale and retail trade and motor vehicle repair generated around €1.19 billion in gross value added in 2025. Accommodation and food services contributed about €621 million, while real estate activities generated around €536 million.
The pandemic demonstrated the risks of Montenegro’s dependence on tourism. In 2020, gross value added from accommodation and food services fell to just €85 million before recovering strongly in subsequent years.
Real estate has also expanded rapidly, with gross value added rising from around €307 million in 2022 to €536 million in 2025.
Household consumption accounted for €6.68 billion of GDP in 2025, compared with €1.4 billion in government consumption and €2.2 billion in gross investment.
That structure has changed little over the past decade, with household spending continuing to dominate economic activity. Investment has nevertheless risen sharply, from €916 million in 2016 to €2.2 billion last year.
Much of that increase is offset by Montenegro’s persistent trade deficit. The negative balance of trade in goods and services widened from €888 million in 2016 to around €2.1 billion last year.
Since 2006, Montenegro has attracted around €16 billion in foreign direct investment. Much of it, however, has flowed into real estate, tourism and services rather than manufacturing, technology and export-oriented industries.
As a result, strong foreign investment inflows have done relatively little to raise productivity or broaden the country’s export base. In some years, property purchases alone accounted for as much as half of total foreign investment.
Public finances have also undergone major swings. Public debt rose from €898 million, or 41.5 per cent of GDP, in 2006 to €5.19 billion, or 63.5 per cent of GDP, in 2025. It peaked during the pandemic at 106.4 per cent of GDP in 2020.
Although the current level does not pose an immediate threat to fiscal stability, almost 94 per cent of government debt is external, leaving Montenegro exposed to shifts in interest rates and conditions on international financial markets.
Against this backdrop, the corporate sector remains dominated by trade, energy, construction and telecommunications, while gambling has also emerged among the country’s most profitable industries.
Biggest companies in Montenegro
Montenegro’s 100 largest companies generated €6.74 billion in revenue and €585.5 million in net profit in 2025, while employing 32,859 people – an average of around 330 workers per company.
State-owned power utility Elektroprivreda Crne Gore, EPCG, recorded the highest revenue, at €406 million, but was absent from the ranking of the most profitable companies after posting a €92 million loss. The result followed an eight-month shutdown of its main thermal power plant for environmental upgrades.
Financial statements show that retail, energy, construction and telecommunications continue to dominate Montenegro’s corporate landscape, with a defence-sector company also making an unusual appearance among the ten largest businesses by profit. Among the top ten companies by revenue are four retail chains widely perceived as the primary beneficiaries of recent economic reforms and rising inflation, as well as the absence of major international retail giants in Montenegro, such as the long-announced Lidl.
The country’s 11 commercial banks posted a combined profit of €146.5 million in 2025, according to Central Bank data. The highest profit was recorded by the bank owned by Hungary’s OTP Bank—55 million euros.
Despite continued revenue growth and stable operations, total banking-sector profit fell by €11.2 million, or 7.09 per cent, from the previous year, mainly because of lower income from fees and commissions.
The insurance sector continued to grow, recording a pre-tax profit of €13.9 million in 2025, up about 11 per cent, or €1.4 million, from €12.5 million a year earlier.
10 biggest companies by revenues in Montenegro
The 10 largest companies in Montenegro by revenue generated €2.4 billion in 2025, equivalent to 29% of the country’s GDP. Together, they employed around 11,000 people. In line with the structure of Montenegro’s economy, where trade, transport, accommodation and food services have the largest share of GDP in the region, at nearly 26% (compared with around 15–20% on average across the region and approximately 17% in the EU) supermarket chains and wholesalers of various consumer products dominate the ranking of Montenegro’s largest companies.
- “Elektroprivreda Crne Gore” (EPCG)
Elektroprivreda Crne Gore (EPCG) is Montenegro’s state-owned national electric power company, responsible for the generation, transmission, and distribution of electricity across the country. Its revenues were 412 million euro in 2025, while it had loss of 92 million euros. It plays a pivotal role in the nation’s energy sector by operating major hydroelectric and thermal power plants while actively expanding into renewable energy projects.
- ”Voli Trade”
Voli is the largest supermarket chain in Montenegro – owned by businessman Dragan Bokan – serving as a market leader in retail, food distribution, and agricultural production across the country. The company reported revenues of €390 million in 2025, and a profit with 16 million euros. With over 2,400 employees, is one of the largest employers in the country.
3.”HARD DISCOUNT LAKOVIĆ”
As Voli’s primary competitor, HD Laković is one of Montenegro’s leading hypermarket chains, consistently reporting steady growth in revenue and profit over the years. Owned by businessman Komnen Laković, the company is widely recognized for its large-format stores, competitive pricing, and broad selection of groceries and household goods. The company reported revenues of €294 million in 2025 and a profit of around €12.5 million.
- “IDEA – CG”
As the third major player in the retail sector, IDEA is one of Montenegro’s largest market chains, operating over 130 stores nationwide, a member of the Fortenova Group. The brand features various store formats- ranging from small neighborhood shops to large supermarkets – tailored to both quick daily purchases and broader household needs. The company reported revenues of €275 million in 2025 and a profit of around €1.4 million.
5.”JUGOPETROL”
Jugopetrol is Montenegro’s leading petroleum company, operating a nationwide retail network under the well-known EKO brand. Owned by the Greek energy group HELLENiQ ENERGY, the company engages in the import, wholesale, and retail distribution of high-quality fuels and petroleum products across the country. Beyond retail gas stations, Jugopetrol plays a critical strategic role in national logistics by supplying aviation fuel at Montenegro’s international airports and managing major fuel storage facilities. The company reported revenues of €251 million in 2025 and a profit of around €9.4 million.
6.”MTEL”
MTEL is one of the three largest telecommunications operators in Montenegro, owned by the state-owned Telekom Serbia. The company’s profit grew by 76% compared to last year. The company reported revenues of €183 million in 2025 and a profit of around €77 million.
- “MONTEFARM”
Montefarm is Montenegro’s state-owned pharmaceutical institution responsible for the procurement, distribution, and warehousing of medicines and medical supplies for the public healthcare system. Operating a widespread network of state pharmacies across the country, it ensures that citizens have reliable access to prescription drugs and vital healthcare therapies. In addition to retail pharmacy services, Montefarm serves as the primary wholesaler supplying public hospitals, health centers, and clinical facilities nationwide. The company reported revenues of €182 million in 2025 and a profit of around €353 thousand.
- “DOMAĆA TRGOVINA”
DOMAĆA TRGOVINA is one of Montenegro’s leading retail companies, best known for operating the popular Aroma and City market chains across the country. Part of the regional Expo group, the company focuses on neighborhood markets and supermarkets that emphasize fresh produce, bakery goods, and a pleasant shopping experience. The company reported revenues of €161 million in 2025 and a profit of around €4.1 million.
- “GLOSARIJ”
Glosarij is Montenegro’s leading pharmaceutical wholesaler and medical distributor, authorized to supply over 300 global healthcare brands across the country. For years, the company has been one of the largest beneficiaries of public tenders in Montenegro. Founded in 1992, the private company specializes in the import and distribution of prescription medicines, medical equipment, and healthcare supplies to public hospitals, pharmacies, and clinical facilities. Owned by businessman Branislav Martinović. The company reported revenues of €160 million in 2025 and a profit of around €7.5 million.
10.“BAR-KOD”
BAR-KOD is one of Montenegro’s leading companies in the import and distribution of consumer goods. Established as a wholesale trading company, it has expanded into an integrated distribution operator, with a portfolio covering cosmetics, perfumes, household care products, food products and tobacco products. The company also operates in retail through the BAR-KOD SHOP perfumery chain and the TABACCO SHOP network, while its distribution network covers the entire territory of Montenegro. The company reported revenues of €145 million in 2025 and a profit of around €4.3 million.
‘Euro Model’ Opens a New Economic Front
The outlook for 2027, however, has introduced fresh uncertainty for both businesses and workers.
In mid-September, Prime Minister Milojko Spajić unexpectedly unveiled a new economic programme, dubbed the “Euro Model”, promising another major increase in minimum wages from January 2027 alongside further cuts to taxes and social contributions on labour.
Under the proposal, the minimum net salary would rise to €1,000 for jobs requiring primary or lower education, €1,250 for positions requiring secondary education and €1,400 for jobs requiring higher education. Current minimum wages stand at €600 and €800, depending on the qualification level required.
The increase would be partly financed through a further reduction in labour taxes. The proposal would abolish the employee pension contribution, currently set at 10 per cent, as well as unemployment contributions.
It would also scrap the 15-per-cent personal income tax bracket, leaving salaries untaxed up to €700 and applying a nine-per-cent rate above that threshold.
The government also plans to adjust pensions four times a year from 2027, allowing them to follow wage movements more closely.
On September 17, the government approved six draft laws needed to implement the reform during an electronic session, without holding a regular cabinet meeting. According to media reports, ministers communicated their positions through a government WhatsApp group.
The legislative package includes amendments to labour, income tax, social contribution and pension laws and must still be approved by parliament.
Spajić says the fiscal cost of the reform will be covered by stronger consumption and employment, a crackdown on the grey economy, tighter control of public spending, additional tax measures and more effective confiscation of illegally acquired assets.
He has projected a budget deficit of around four to five per cent of GDP in 2027, falling towards three per cent in 2028.
The proposal has drawn strong criticism from employers, who say they were not consulted before it was announced. Business associations have warned that sharply higher labour costs could force some companies, particularly smaller firms and those operating on narrow margins, to cut jobs or close.
The Union of Employers has called for the reform to be postponed or scaled back, warning that companies could begin laying off workers even before January if the proposal remains unchanged.
Some economists have also questioned the programme’s fiscal sustainability, warning that lower contribution revenues combined with higher spending could widen the budget deficit and eventually require new taxes, spending cuts or additional borrowing.
Critics have described the programme as a debt-driven model unveiled ahead of parliamentary elections due next year.
Spajić has rejected those concerns, arguing that the reform is sustainable and follows the approach used in his earlier Europe Now 1 and Europe Now 2 programmes. Those reforms substantially raised minimum and average net wages by reducing taxes and compulsory contributions, including health and pension contributions.
The way the latest programme was adopted has also prompted questions within the government itself.
Finance Minister Novica Vuković did not declare support for the proposal during the electronic cabinet session. He later said he needed more time to assess the programme, remarking that his colleagues had analysed the legislation “very quickly” while he would need several more days before reaching a conclusion.
Spajić later said some cabinet members had failed to vote because they had not seen the WhatsApp message in time. He insisted, however, that the reform had been in preparation for a long period and that its fiscal sustainability had been analysed.
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* Ivan Ivanovic is a journalist employed at the BIRN Montenegro, based in Podgorica, where he works on investigative stories and contributes to reporting on key economic issues in the country
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