Montenegro ranks 67th globally in the Economic Freedom Index for 2025, published by the Heritage Foundation.
According to the Ministry of Finance, by securing the 67th position, Montenegro has improved by 16 places compared to the previous year. The index for this year covers data from the second half of 2023 to the first half of 2024.
“Economic freedom in Montenegro is rated at 63.8, making its economy the 67th freest in the 2025 Index. This marks an increase of 4.1 points from last year. Montenegro ranks 33rd out of 44 countries in the European region, with its overall result above the global average,” the statement reads.
The 2025 Index reflects progress in eight indicators for Montenegro, including fiscal stability, public spending, judicial efficiency, labor market freedoms, ease of doing business, free trade, tax burden, and monetary freedoms.
“Montenegro maintained its position in financial freedom and government integrity,” the Ministry added.
The greatest progress was made in the area of fiscal stability, where Montenegro scored 87.9, an increase of 48.6 points compared to 2024.
“This improvement is a result of a reduction in the budget deficit and public debt, as well as effective management of public finances. This also confirms the macroeconomic stability of the country,” the Ministry stated.
The Index also showed Montenegro’s improved performance in the following areas: public spending (from 32.4 to 45.2), judicial efficiency (from 41.8 to 50.1), labor market freedoms (from 62.6 to 64.4), ease of doing business (from 70.1 to 70.9), free trade (from 78.8 to 79.6), tax burden (from 88.3 to 88.7), and monetary freedoms (from 70.7 to 70.9).
“Montenegro improved its score in public spending due to a reduction in state expenditures compared to last year. Lower government spending has positively impacted this indicator, as high public spending can negatively affect economic efficiency,” the statement explained.
The improvement in judicial efficiency is attributed to positive developments in the functioning of the judicial system.
“There is still room for progress in the areas of financial freedom and government integrity, which are expected to lead to greater efficiency in government administration and increased economic activity in the long term,” the Ministry added.
In the past year, the Ministry of Finance coordinated the activities of relevant ministries and institutions responsible for the areas covered by the Economic Freedom Index.
“The improvement of indicators and the overall position on the list confirms the successful work of all institutions in creating a better regulatory framework, enhancing the business environment, and expanding market freedoms,” the statement concluded.
