The head of the Social Democrats (SD) parliamentary group in the Parliament of Montenegro and representative of the European Union, Boris Mugoša, pointed to a very worrying trend of declining quality of foreign investments in Montenegro, the European Union announced today.
He commented on data from the latest analysis of the Foreign Investors Council on foreign investments over the past six years.
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Mugoša pointed out that he warns of a very serious deterioration in the structure of foreign investments in the long term, namely a drastic decline in productive investments in the last 5 years (in companies and the real economy) and an increase in real estate (which does not contribute to the creation of new values and economic growth in the long term).
"Namely, in 2018, almost 40% of investments were in productive investments and 21% in real estate, while in 2024 the situation was almost reversed, as 51% of all foreign investments were in real estate and only 12,8% in productive investments. Last year, productive investments were as much as 70% lower than in 2018," the European Union said in a statement.
"An unpredictable business environment - frequent changes in regulations, their selective application; weak rule of law and institutional and political instability; lack of a strategic approach; inefficiency of public administration are the reasons that influence the decline in trust and the reduction of productive investments," Mugoša wrote on the social network Iks.
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