Montenegro’s real gross domestic product (GDP) grew by 1.5% year-on-year in the fourth quarter of 2025, slowing from a 3.1% growth in the previous quarter (chart), according to preliminary data published by the country’s statistics office on March 9.

In nominal terms, GDP increased by 5.1% in the October-December period. Montenegro’s economy generated €2,029.1mn in the fourth quarter of 2025, compared with €1,930.8mn in the same period a year earlier.

The figures come as the European Bank for Reconstruction and Development upgraded its growth outlook for the country. In its latest Regional Economic Prospects report published on February 26, the bank projected Montenegro’s GDP to expand by 3.2% in 2026, raising its forecast by 0.5 percentage points from the estimate issued in September.

The EBRD also revised its growth projection for 2025 upwards by 0.6 percentage points to 3.2%.

According to the bank, Montenegro’s economic expansion is expected to remain at 3.2% in both 2026 and 2027, supported by progress in EU accession reforms and continued investment in infrastructure.

However, the lender warned that weak fiscal buffers and limited economic diversification continue to leave the country vulnerable to external shocks and climate-related risks.