MONTENEGRO: BASIC FACTS

Montenegro is a country located in South-eastern Europe.  It has a coast on the Adriatic Sea to the South, and borders Croatia (25 km) on the West, Bosnia and Herzegovina (225 km) on the Northwest, Serbia (203 km) on northeast and Albania (172 km) on the southeast.

Geographic coordinates – 42 30 N, 19 18 E
Capital:  Podgorica
Area: 14,026 km2
Land: 13,812 km2
Water: 214 km2
Land boundaries: 625 km
Coastline: 293.5 km
Elevation extremes: lowest point:  Adriatic Sea 0 m
Highest Point: Bobotov Kuk, 2,522 m
Land use: arable land: 13.7%
Permanent crops: 1%
Other: 85.3%

Climate of Montenegro
Summer is hot, dry and with an average temperature of 27.40ºC (81.32 ºF) and the Winter is mild, rainy and short.  It is a climate with four well defined seasons.
-Maximum sea temperature: 27.10ºC (80.78 ºF).
-Average number of solar days per year: 240 days.

Temperature:  In the summer there is a great difference between the maximum temperatures during the day as compared to the lowest temperature, at night.  The Summer night is accentuated by night cooling. In winter, temperatures are mild.  The average temperature of the hottest month is higher than 20ºC (68ºF), and the average of the coldest month is never less than 0ºC (32ºF).

The Country and Market Assessment
Montenegro Independence
Montenegro became independent on 3 June 2006 following the holding of a referendum on independence.  The European Union (“EU”) on 12 June 2006 recognised the referendum result and announced that EU members would individually recognise Montenegro and establish diplomatic relations with it.  Serbia recognised Montenegro as an independent state on 15 June 2006.

Montenegro became a member of the UN on 28 June 2006 and joined the European Bank for Reconstruction & Development on 6 September 2006, and the IMF and World Bank in January 2007. Montenegro’s political and consequential economic transformation over the last decade has been progressive and is expected to result in accession to the EU.  This accession will likely to materially result in increase investment of capital into Montenegro real estate and the luxury tourism and leisure market.

Economic
Montenegro currently enjoys rapid economic growth and is observed to be one of the more compelling markets for investors looking for above average returns.  The 2006-2007 year have seen a combination of a strong GDP growth of more than 6 per cent in 2006, coupled with low inflation and a significant inflow of foreign direct investment (more than US$ 1 billion over the two years combined).  Fiscal performance has also improved and the country’s level of external debt has been modest.

Key attributes of the Montenegrin economy include:
- Noted as the world’s fastest growing tourism economy
- Political stability focus on fiscal policy
- Strong economic fundamentals:
- Controlled inflation
- Declining unemployment rates
- 2007 Average Inflation at 4.2%
- 2007 GDP Growth at 7.0%