Montenegro advances in the Heritage Foundation’s Index of Economic Freedom

According to the 2025 Index of Economic Freedom, published by The Heritage Foundation, Montenegro ranks 67th globally, marking an advancement of 16 places compared to 2024. The 2025 Index covers data from the second half of 2023 to the first half of 2024. 

Montenegro's economic freedom score is 63.8, making it the 67th freest economy in the 2025 Index. This score represents an increase of 4.1 points from the previous year. The country ranks 33rd out of 44 in Europe, with an overall score above the global average. 

The 2025 Index highlights Montenegro's progress in eight key indicators, including fiscal health, government spending, judicial effectiveness, labor freedom, business freedom, trade freedom, tax burden, and monetary freedom. The country maintained its position in financial freedom and government integrity. 

The most significant improvement was recorded in fiscal health, where Montenegro achieved a score of 87.9, marking an increase of 48.6 points compared to 2024. This progress was driven by reductions in budget deficit and public debt, alongside sound public finance management, confirming the country’s macroeconomic stability. 

Additional improvements were observed in: government spending (from 32.4 to 45.2), judicial effectiveness (from 41.8 to 50.1), labor freedom (from 62.6 to 64.4), business freedom (from 70.1 to 70.9), trade freedom (from 78.8 to 79.6), tax burden (from 88.3 to 88.7), monetary freedom (from 70.7 to 70.9).

Montenegro’s improved ranking in government spending is attributed to reduced public expenditures compared to the previous year. Lower government spending has positively impacted this indicator, as high public expenditures can hinder economic efficiency. Additionally, progress in judicial effectiveness reflects positive developments in the functioning of the judiciary. 

There is still room for improvement in financial freedom and government integrity, which, over time, are expected to enhance the efficiency of state administration and boost economic activity. 

Over the past year, the Ministry of Finance has coordinated efforts among relevant ministries and institutions responsible for the areas covered by the Index of Economic Freedom. The improvement in indicators and overall ranking is a testament to the successful work of all institutions in enhancing the regulatory framework, improving the business environment, and promoting greater market freedoms.