Out of a total of 178 countries, Montenegro ranked 80th on the American Heritage Foundation’s Global Economic Freedom list. In the previous report, it was ranked 91strr from 180 places, reaching a jump of 11 places.
According to the Foundation’s report, Montenegro’s overall economic freedom score was 63.4 and increased by 1.9 points, mainly due to improved fiscal health.
“Montenegro ranks 39th among 45 countries in the European region,” the report notes.
Montenegro’s economy has climbed to a moderate level without this year.
“The high level of government spending and debt, which hinders greater economic freedom, will be mitigated by improved public sector finances. “The country is still plagued by corruption and weak rule of law, as well as by a complex regulatory environment,” the report adds.
Progress has been made in the areas of judicial efficiency, public spending, fiscal and business health, monetary freedom and the labor market.
The decline was recorded in the areas of property rights, tax burden and trade freedoms.
Investment and financial freedoms remained at the same level.
Of the countries in the region, Northern Macedonia ranked 46thth, Slovenia 48th, Serbia 54th, Kosovo 58th, Albania 66th, Croatia 79th and Bosnia and Herzegovina 82nd.
When it comes to the rule of law, the part of the report that refers to Montenegro says that the law respects and protects property rights.
“The government has improved the property registration system, but further reforms are needed. Despite recent legislative reforms aimed at improving the efficiency of court proceedings, judicial corruption and lack of transparency or accountability remain problems. “Corruption and the perception of corruption are important problems in the public and private sectors,” said the Heritage Foundation.
Starting a business and securing electricity have become cheaper, while settling on building permits takes less time.
“Regulatory and legal frameworks, which regulate foreign investment, generally facilitate the development of a growing private sector. The financial sector is small, but the level of participation and investment of foreign banks is considerable. “The fully privatized banking sector operates in market conditions,” the report added.