AmCham Business Climate Report shows a decline of business climate rating

The overall average rating of the business climate in Montenegro for 2021 – 2022 is 5.65, which is lower than the rating from the Business Climate Report for 2019-2020, which was only 5.8 it was announced today at the traditional AmCham event “Openly with the Prime Minister”. The AmCham reminds that the rating of the business climate in Montenegro for 2017-2018 was 6.29 which indicates a continuous decline in quality of the business environment.

This AmCham Report presents is an in-depth analysis of various economic sectors in the country, with several recommendations given by AmCham members – 49 of them – which employ over 5,700 people and have invested an impressive amount of EUR 1.75 billion since the start of their business operations in Montenegro. For the main reasons for dissatisfaction with the business environment, AmCham members cite political instability, which strongly affects investments, the rule of law that needs improvement in order to have a competitive and fair market, as well as frequent changes of important laws that brings legal uncertainty.

The American Chamber of Commerce emphasizes that the Government’s priorities must be – a systemic approach in suppressing the gray economy; reducing the gap between the needs of employers and the labor market offer through the modernization of educational programs, creating an ecosystem that supports the concept of lifelong education; recognizing the potential of the ICT sector as a catalyst for the Montenegrin economy; predictable and competitive tax policy.

– As the leading voice of American and other investors in Montenegro, AmCham will continue to strongly support the reform process in the country and its accession to the European Union. Montenegro’s participation in the European Union pre-accession process and its membership in NATO make it an attractive investment destination. Therefore, I am convinced that the Business Climate Report will be a useful tool for potential investors to familiarize themselves with the investment potential of Montenegro from the perspective of current investors, said the AmCham President, Ms. Svetlana Vuksanović.

The U.S. Ambassador, H.E. Judy Rising Reinke, pointed out during the official opening that the AmCham’s Business Climate Report offers a comprehensive overview of the business environment in Montenegro and serves as a basic tool for potential investors. And, just as importantly, she said, the Report marks the issues that mostly concern business community, along with recommendations for decision-makers in the Government and other stake holders. “We all strive for a business environment that is transparent, fair and predictable. Companies need it for success, and the Government also needs it in order to attract new high-quality permanent investments that can boost economic recovery and growth. The report will offer insights how to get there and how we can jointly contribute to achieving it,” said Ambassador Reinke.

The introductory was followed by an interview with the Prime Minister of Montenegro, Mr. Dritan Abazović, during which the Prime Minister emphasized  that the Government is doing everything to create a favorable business environment, and numerous parameters, such as record foreign direct investments, the highest GDP, employment and collection taxes in history, speak in favor of it.