Do we pay the same for a cup of coffee in Tivat as we do for a family lunch in Bijelo Polje? Let's calculate how much 100 euros actually costs in different cities across Montenegro.
The difference in living standards and purchasing power between Montenegrin regions is so great today that it effectively creates two parallel realities: the economically prosperous south and capital, and the significantly poorer north of the country.
Average salaries on the coast and in Podgorica are hundreds of euros higher, and unemployment there is minimal, while half of the residents of northern municipalities live on the poverty line. As a result, the same 100 euros have a completely different value for a resident of Budva or Tivat and for a family from Bijelo Polje or Pljevlja: for the former, it's a small portion of their monthly income, while for the latter, it's a significant expense.
Below is an analysis of the latest data. Monstate and other government sources that show how deep this gap is and how it affects people's daily lives.
Salaries and purchasing power: the south earns significantly more
According to the Statistics Office MonstateSalaries on the coast and in the capital significantly exceed those in the northern regions. At the end of 2024, the average net salary in the wealthiest municipality, Tivat, was €1,243, while in the touristy Budva it was €983. Meanwhile, in the north, the figures are much more modest: in Bijelo Polje, it was only €851, and in Pljevlja, about €983.
Thus, the income gap means that a month's work in Tivat brings in almost 50% more money than in Bijelo Polje. Consequently, the value of 100 euros also varies: for a Tivat resident, it's approximately 8% of the average income, in Budva it's 10%, while in the north, the same amount can amount to 12% or more of the family budget.
Technically, 100 euros will buy you the same amount of groceries or fuel anywhere in the country. However, the relative impact on the budget across different population groups is incomparable: for residents of the north, such a purchase is significantly more difficult and reduces the remaining funds for basic needs.
The situation is exacerbated by the fact that the minimum wage and pension are the same for the entire country. Many families in the north live on a minimum wage of around €600 or a pension of around €450, which barely covers basic expenses. The minimum consumer basket for a family of four, according to data from the end of 2023, cost around €830, meaning in the north it required almost two local average salaries. And the syndical (social) basket reached €2,045 by the end of 2025. These figures clearly demonstrate that the income of a significant portion of northern families does 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 regional gap is evident not only in wages but also in job availability. The southern regions of Serbia and Podgorica are effectively at full employment. According to data from the end of the first half of 2025, the unemployment rate in four coastal cities was below 2%: Kotor – 1,23%, Herceg Novi – 1,56%, Budva – 1,68%, and Tivat – 1,78%. In the capital, the rate was around 3–4%.
In the north, the situation is diametrically opposed. In a number of municipalities, unemployment reaches and exceeds 50%: Petnica – 68,9%, Gusinje – 61,3%, Andrijevica – 51,4%, Plav and Rožaje – around 48%. Even in the largest northern municipalities – Bijelo Polje and Pljevlja – the unemployment rate is several times higher than on the coast. In Berani, unemployment was approximately 36% in 2025.
Moreover, the statistical decline in unemployment in the north is partly due not to job creation, but to mass migration. Many northern residents are leaving for Podgorica, the coast, or abroad, so the number of unemployed is falling faster than employment is growing. For example, in Rožaje, the number of registered unemployed decreased by 812 people over the year, but the number of employed people increased by only 263—the remainder is explained by emigration.
The region's economy has also been weakened by the effects of privatization and industrial closures. In most northern districts, local governments and utilities remain the largest employers. The exception is Pljevlja and parts of Bijelo Polje, where large industrial enterprises still operate.
The North is at risk of poverty: every second person is at risk
Low incomes and unemployment directly impact poverty levels. According to Monstat, 40% of the population in the northern regions lives at risk of poverty—four times the rate on the coast, where the rate is approximately 10,5%, and almost three times the rate in the central region (14,7%).
This confirms the thesis that there are "two Montenegros" in the country. Northern municipalities have been among the highest risk of social exclusion for decades, and their populations are rapidly declining. Over the past three decades, the north has lost more than 50,000 residents due to migration to southern cities or abroad. The declining population shrinks the domestic market, further hindering business development.
The state's development index, calculated based on income, education, and employment, also reveals a huge gap. In 2022–2024, Budva and Tivat achieved 170% and 135% of the national average, respectively. Meanwhile, municipalities like Bijelo Polje and Berane barely reached 66%, while Petnica achieved only 27%. In other words, Budva's development level is six times higher than Petnica's.
Investment and Infrastructure: The South is Developing, the North is Waiting Its Turn
Despite claims of balanced development, the largest public investments traditionally go to Podgorica and the coastal regions. In the 2026 capital budget, the majority of investments, out of approximately €400 million, are again concentrated in the south and the capital – from the construction of a €300 million state-owned data center to infrastructure upgrades.
The North, meanwhile, receives minimal investment, and even announced projects—ski resorts, roads, factories—are often postponed. For example: highway Bar–Bolyare: only the first part of the route has been built, and the rest is still in the planning and design stage.
Foreign investment also tends to flow toward the coast—into tourism, real estate, and energy. Podgorica and the Primorsky region consistently attract two-thirds of all investment in the country.
Two sides of one country – how to bridge the gap?
All the data—from wages and unemployment to the development index—speak to one thing: Montenegro is divided between a successful south and a struggling north. A hundred euros in the pocket of a resident of Budva and a resident of Bijelo Polje are different amounts, just as the prospects of young people in Tivat and Plav are different.
Experts warn that without developing the north, the country as a whole will not achieve sustainable development. Authorities must more actively encourage investment, develop infrastructure, support local businesses, and complete key roads, including the extension of the highway to the border with Serbia. Investment in winter tourism, agriculture, and new industries is also important.
Until these goals are met, statistics will continue to reflect two disproportionate realities, and residents of northern regions will face a difficult choice between living at home and moving to a place where 100 euros are worth much less.
Photo: Benjamin Nolte/dpa-tmn/dpa
