Transcript Montenegro Today

MONTENEGRO
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Population 620 029 (census 2011)
Surface 13 812 km2
Border length 614 km (coast length 293 km)
Administrative Capital Podgorica (185 937 inhabitants)
NATURAL RESOURCES
 agricultural area of ​0.32
ha per capita
 1 ha of forest per capita
 40 natural lakes
 4 dams
 great river potentials
 mineral wealth
NATIONAL PARKS
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Durmitor
Lovćen
Biogradska gora
Skadarsko jezero
Prokletije
GEOGRAPHIC AREAS
 Northern – mountanious
₋ Tourism, animal
husbandry, agriculture,
forests, hydro potential
 Central
₋ The biggest plain in
Montenegro and the
most fertile area
 Southern – coastal
₋ Beautiful coast, sandy
beaches (tourism,
maritime economy,
fishery, salt production)
EUROPEAN AND ATLANTIC
INTEGRATION OF MONTENEGRO
 CEFTA 2006 signed 19th of December 2006.
 The Stabilization and Association Agreement
signed 15th of October 2007.
 Interim SAA effective from 01.01.2008.
 Submited answers to a questionnaire 09.12.2009.
 Candidate status for EU membership 17.12.2010.
 Member of the WTO 29 April 2012.
 Negotiations for EU membership
began in June 2012.
DEVELOPMENT PRIORITIES OF MONTENEGRO
• Tourism
• Agriculture
• Energy Sector
MACROECONOMIC INDICATORS
Year
2006
2007
2008
2009
2010
2011
2012
Inflation (%)
2,00
7,70
6,90
1,50
0,70
2,80
5,10
Rate of
Unemployment (%)
14,60
11,90
10,70
11,43
12,13
11,50
13,50
504,00 462,10 481,70
699,90
912,40
1.063,7
-
23,40
23,50
29,40
32,50
-
Foreign debt
(mil €)
Foreign debt as % of
GDP
Current Account
Balance (mil€)
17,20
15,60
-673,50 -1,058,7 -1,535,2 -830,30 -710,20 -573,40 -587,60
Deficit/surplus of
budget (mil €)
85,10 173,00
15,10
% of participation
GDP
3,90
0,50
6,40
-132,10 -112,30 -189,70 -163,80
-4,40
-3,60
-5,90
-4,90
INDUSTRY GROWTH RATE
17.5
13.8
3.7
-0.7
0.6
2.4
-1.9
1
0.1
-2
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
-10.3
TRADE EXCHANGE
-7.1
2012
Export Import Trade deficit
-1389.20
391.90
1781.10
2011
-1306.20
476.50
1782.80
2010
-1267.20
356.60
1623.80
2009
-1321.60
296.30
1617.90
2008
-2025.30
450.40
2475.70
2007
-1544.40
483.40
2027.80
2006
-966.20
462.00
1428.20
2005
-641.90
369.30
1011.20
2004
-416.40
452.10
868.60
2003
-359.30
270.60
629.90
-32.2
MONTENEGRO AS THE WORLD CAN SEE IT
World Bank Doing Business
Year
Rank
2008
81/178
2009
2010
2011
90/181
71/183
66/183
2012
56/183
Bilateral Relations
Montenegro has signed:
World Economic Forum Global
Competitiveness Report
Year
Rank
(1-7)
2008-2009
65/134
4,11
2009-2010
62/133
4,16
2010-2011
49/139
4,36
2011-2012
60/142
4,27
2012-2013
72/144
4,14
 15 agreements on economic
cooperation
 10 agreements on the
reciprocal promotion and
protection of investments
 Free trade agreements with
EU, CEFTA, EFTA, Russia,
Turkey, Ukraine while
negotiations with Belarus and
Kazakhstan are still in progress
ORIGIN OF INVESTORS
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Investors are coming from 88 countries
There is no domination of any country relative to the number
of registered investors
FOREIGN INVESTORS IN MONTENEGRO
Germany
3%
Other
28%
Slovenia
4%
Serbia
5%
Russia
12%
Cyprus
7%
United
Kingdom
7%
Austria
8%
Switzerland
8%
Italy
10%
Hungary
8%
IMPORTANCE OF FOREIGN DIRECT INVESTMENTS
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1,224
1057.2
847.3
652.8
647.3
410.8
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494.7
633.3
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2005
2006
2007
2008
2009
2010
2011
2012
Speeding up the
reform processes;
Changing the

structure of the
economy;
Contributing to 
GDP, GDP
growth,
employment,
budget revenues,
export/import
Developing
regional
cooperation
FDI’s are
changing way of
thinking
FDI per sectors
2006
2007
2008
2009
2010
2011
Finance
Tourism
Construction
Industry
Services
Transport
Agriculture
Other
Total
33%
25%
10%
10%
8%
4%
2%
8%
505
30%
23%
12%
12%
9%
5%
2%
7%
678
28%
22%
14%
10%
11%
5%
2%
8%
685
11%
14%
8%
48%
6%
4%
2%
7%
1,070
24%
21%
9%
22%
9%
5%
2%
8%
692
21%
24%
8%
23%
10
4%
2%
8%
534
investors from 88 countries
State
FDI inflow in €
% Of total FDI
1
Italy
486 .804 .302
11.8
2
Russia
478 .002. 577
11.6
3
Hungary
355 .691 .493
8.6
4
Great Britain
322 .229. 047
7.8
5
Cyprus
309 .760 .754
7.5
6
Switzerland
305 .170. 662
7.4
7
Austria
298 .424 .903
7.2
8
Serbia
159 .497. 818
3.9
9
Germany
145 .354 .720
3.5
10
Slovenia
683 .267
3.5
source: MIPA
standard rate – 19 %
lower rate – 7 %
VAT
corporate profit tax
flat rate – 9 %
personal income tax
flat rate – 15 %
property tax
proportional tax ranging between 0.1 % - 1% of the
immovable property’s market value
Exemption from the income tax payment
› a newly-established legal entity in economically underdeveloped municipalities which
performs production activity is exempted from paying income tax for the first eight years
following the beginning of business operations, on the income generated by performing the
business activity in the underdeveloped municipality
› a tax payer who makes a profit in a newly established business unit which performs
production activity in underdeveloped municipalities is reduced the income tax for eight years
proportionate to the share of the profit thus generated in the total profit of the tax payer.
REASONS TO INVEST IN MONTENEGRO?
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Politicaly, monetary and macroeconomic stability
Simple START UP (1 euro + 4 days)
National treatement – same rights and obligations as domestic
Free money transfer
The same taxation for everyone
Liberal economic regime of foreign trade
Favorable tax policy 9% profit tax, 7/19% VAT, 9% income tax
International accounting standards
Growth of economic freedoms
Geographical location and climatic conditions