Montenegro is a nation in Europe that has a relatively well-developed economy. The economy of Montenegro is recovering from several major events such as the Yugoslav wars. In 2017, the GDP per capita of Montenegro was ranked as the 75th highest in the world at $7,678. On the other hand, the Montenegrin GDP was the 150th highest in the world at $4.78 billion. Montenegro has a wide range of natural resources which are economically significant such as arable land, forests, and the country's beautiful scenery among others.
Natural Resources of Montenegro
The arable land in Montenegro accounted for about 17.2% of the country's total territory as of 2015. The data also showed that from 2012 to 2013 the size of arable land decreased rapidly. Montenegro is divided into five distinct agricultural regions: the coastal zone, Karst region, the northern mountainous area, Polimsko-Ibar region, and the Zeta-Bjelopavlići region. The northern mountainous region is the largest agricultural region in Montenegro and it covers roughly 35% of the country's agricultural land. The area is mainly conducive for growing potatoes and cereals. The second largest agricultural area in Montenegro is the Polimsko-Ibar region and it covers 25% of the country's total agricultural land. Agriculture is an essential industry in Montenegro and it contributed 7.5% of the country's GDP in 2016. The Montenegrin labor department estimated that in 2017, about 7.9% of the country's labor force was employed in the country's agriculture sector. Some of the most common crops grown by Montenegrin farmers include grapes, wheat, maize, and oats. The Montenegrin agriculture sector faces several significant challenges such as climate change and the high cost of purchasing farm inputs. The Montenegrin government has put in place several measures to improve the country's agrarian sector.
One of the most important crops in Montenegro is grapes which are mainly grown in the country's southern and coastal regions. The most important wine growing areas in Montenegro are located near Podgorica, the country's capital, and Lake Skadar. Apart from large scale grape farms, many Montenegrin families grow grapes and produce wine for their consumption. Some of the grape varieties grown in Montenegro include Krstač, Vranac, and Chardonnay. Krstač is one of the few grape varieties native to Montenegro, and it is famous for producing high-quality wine. Vranac is also native to Montenegro and is considered the most important grape variety in the country. The variety is used to produce a dry red wine which has a distinct taste. One of the most important wine producers in Montenegro is Plantaže. The company's wine cellars are among some of the most popular tourist destinations in Montenegro.
It is estimated that forests cover approximately 45% of Montenegro's total land area. The government owns approximately 67% of Montenegro's forests while private individuals and corporations own the rest. Some of the species of trees found in Montenegro include oaks, Macedonian pines, and mountain maple. One of Montenegro's famous forests is Biogradska Gora which is located in Kolašin municipality. The forest is famous because it is one of the few areas in Europe with a virgin forest which covers an area of about 6.18 square miles. Biogradska Gora is home to more than 200 unique species of plants and 100 bird species. Montenegro's forests are mainly used for the production of timber with the government estimating that approximately 81% of the country's forests are used for timber production. Montenegro's forests face several challenges such as climate change, pests, and diseases. Several experts have stated that climate change is the most significant challenge facing Montenegrin forests. The experts also believe that climate change will create a conducive environment for some of the major pests such as bark beetles and defoliators.
One of Montenegro's most important natural resources is fish which are mainly obtained from the Adriatic Sea. Some of the fish species found in Montenegro's territorial waters include the tuna, trout, and carp. Fly fishing is one of the most popular types of fishing in Montenegro, and it is mainly carried out in the country's rivers which are among the clearest waters in Europe. One of the premier fly fishing destinations in Montenegro is the Tara River which is home to several species such as the grayling and stream trout. The Mrtvica River and the Moraca River are other popular fly fishing destinations in Montenegro. Commercial fishing is one of Montenegro's essential economic activities. In 2011, it was estimated that Montenegro's commercial fishing fleet was made up of approximately 170 vessels 22 of which were trawlers. In Montenegro, trawling is considered the most important form of commercial fishing. However, the country's trawlers are old which limits the fish they capture. Another major challenge that faces the Montenegrin fishing industry is the high operating costs that substantially limit the number of days fishers can spend at sea.
Montenegro's beautiful scenery is one of its most important natural resources as it attracts large numbers of tourists to the country. Some of the most beautiful areas in Montenegro include the island of Sveti Stefan, Lake Skadar, and the Lustica Peninsula. The beaches of Montenegro are also considered to be some of its most beautiful destinations. One of the longest beaches in Montenegro is Jaz Beach which is situated in the Budva Municipality. Jaz Beach is popular with sunbathers and campers. Another popular beach in Montenegro is Buljarica which spans a length of 7,382 feet. The tourism sector is one of the essential industries in Montenegro and it employs a large section of the country's workforce. In 2007, the Montenegrin government estimated that the country attracted more than 1 million tourists and the sector earned the country more than $400 million. The Montenegrin government has invested heavily in improving the country's tourism sector mainly through advertising and improving the country's infrastructure.
Growth of the Montenegrin Economy
The Montenegrin government expects that in 2019, the country's economy would grow by 3.5%. Some of the sectors that the Montenegrin government expects to drive the country's economic growth include construction, energy, and tourism.