The difference in living standards and purchasing power between Montenegro’s regions is so large today that it effectively creates two parallel realities — the economically prosperous south and capital, and the much poorer north of the country.
Average salaries on the coast and in Podgorica are higher by hundreds of euros, unemployment there is minimal, while half of the residents of northern municipalities live on the brink of poverty. As a result, the same 100 euros mean something completely different for a resident of Budva or Tivat and for a family from Bijelo Polje or Pljevlja: for the former, it is a small part of monthly income, for the latter, a significant expense item.
Below is an analysis of the latest dataMonstatand other official sources, showing how deep this divide is and how it affects people’s everyday lives.
Salaries and purchasing power: the south earns significantly more
According to the Statistical OfficeMonstat, salary levels on the coast and in the capital are significantly higher than the incomes of residents of the northern regions. At the end of 2024, the average net salary in the wealthiest municipality — Tivat — was 1,243 euros, and in the tourist town of Budva — 983 euros. At the same time, in the north the figures are much more modest: in Bijelo Polje — only 851 euros, in Pljevlja — about 983 euros.
This income gap means that one month of work in Tivat brings in almost 50% more money than in Bijelo Polje. Accordingly, the value of 100 euros also differs: for a resident of Tivat it is about 8% of average income, in Budva — 10%, while in the north the same amount can make up 12% or more of a family budget.
Formally, for 100 euros anywhere in the country you can buy the same amount of groceries or fuel. But the relative burden on the budget for different groups of the population is incomparable: for northern residents, such a purchase is noticeably more difficult and reduces the funds left for basic needs.
The picture is worsened by the fact that the minimum wage and pension are uniform across the country. Many families in the north live on a minimum wage of about 600 euros or a pension of around 450 euros, which barely covers necessary expenses. The minimum consumer basket for a family of four, according to data from the end of 2023, cost around 830 euros, meaning that in the north covering it required almost two local average salaries. And the union (social) basket reached 2,045 euros by the end of 2025. These figures clearly show that the incomes of a significant share of northern families do not even reach half the amount needed for a decent standard of living.
Unemployment: historically low in the south, chronically high in the north
The gap between regions is visible not only in salaries, but also in the availability of jobs. The southern municipalities and Podgorica are effectively in a state of full employment. According to data from the end of the first half of 2025, the unemployment rate in the four coastal towns was below 2%: Kotor — 1.23%, Herceg Novi — 1.56%, Budva — 1.68%, Tivat — 1.78%. In the capital, the figure was around 3–4%.
In the north, the situation is the exact opposite. In a number of municipalities, unemployment reaches and exceeds 50%: Petnjica — 68.9%, Gusinje — 61.3%, Andrijevica — 51.4%, Plav and Rožaje — about 48%. Even in the largest northern municipalities — Bijelo Polje and Pljevlja — the number of unemployed is several times higher than on the coast. In Berane, unemployment in 2025 was about 36%.
At the same time, the statistical decline in unemployment in the north is partly linked not to job creation, but to mass migration. Many residents of the north move to Podgorica, the coast, or abroad, so the number of unemployed decreases faster than employment grows. For example, in Rožaje the number of registered unemployed fell by 812 over the year, but the number of employed increased by only 263 — the rest of the difference is explained by departures.
The region’s economy is also weakened by the consequences of privatization and the closure of production facilities. In most northern municipalities, the largest employers remain local administrations and utility services. The exception is Pljevlja and, partially, Bijelo Polje, where large industrial enterprises are still operating.
The north under threat of poverty: every second person is at risk
Low incomes and lack of jobs directly affect the poverty rate. According to Monstat, 40% of the population in the northern regions live at risk of poverty — four times more than on the coast, where the figure is about 10.5%, and almost three times more than in the central region (14.7%).
This confirms the thesis that there are “two Montenegros” in the country. Northern municipalities have been among the areas with the highest risk of social exclusion for decades, and their population is rapidly shrinking. Over the past three decades, the north has lost more than 50,000 residents due to migration to southern cities or abroad. The decline in population reduces the internal market, which further slows business development.
The development index, which the state calculates based on income, education, and employment levels, also records a huge gap. In 2022–2024, Budva and Tivat reached 170% and 135% of the national average. Municipalities such as Bijelo Polje and Berane barely reached 66%, while Petnjica was only 27%. In other words, Budva is six times ahead of Petnjica in terms of development.
Investments and infrastructure: the south is developing, the north is waiting its turn
Despite claims of balanced development, the largest state investments traditionally go to Podgorica and the coastal areas. In the capital budget for 2026, out of roughly 400 million euros, most investments are again concentrated in the south and the capital — from the construction of a state data center worth 300 million to infrastructure upgrades.
The north, meanwhile, receives a minimal amount of investment, and even announced projects — ski centers, roads, factories — are often delayed. One example isthe Bar–Boljare highway: only the first section of the route has been built, while the rest is still in the planning and design stage.
Foreign investment also more often goes to the coast — into tourism, real estate, and energy. Podgorica and the coast consistently attract two-thirds of all investment in the country.
Two sides of one country — how can the gap be bridged?
All the data — from salaries and unemployment to the development index — point to one thing: Montenegro is divided into a successful south and a struggling north. One hundred euros in the pocket of a resident of Budva and a resident of Bijelo Polje are different sums, just as the prospects for young people in Tivat and Plav are different.
Experts warn: without developing the north, there will be no sustainable development for the country as a whole. The authorities will need to more actively stimulate investment, develop infrastructure, support local business, and complete key roads, including the continuation of the highway to the border with Serbia. Investments in winter tourism, agriculture, and new production facilities are also important.
Until these tasks are completed, statistics will continue to reflect two unequal realities, and residents of the northern regions will continue to face a difficult choice between life at home and moving to where 100 euros are worth much less.
Photo: Benjamin Nolte/dpa-tmn/dpa