Montenegro was ranked on 68th place among 179 nations surveyed by the Heritage Foundation and the Wall Street Journal for the 2010 Index of Economic Freedom.

Montenegro’s economic freedom score is 63.6 and has improved by 5.4 points since last year, reflecting notable improvements in seven of the 10 economic freedoms. Montenegro ranks 32nd out of 43 countries in the Europe region, and its overall score is above the world average.

Sharply improved labour market flexibility and an improved regulatory environment for investment enabled Montenegro to score the largest increase in economic freedom in the 2010 Index. The country’s flat tax has become more competitive due to recent tax cuts, and government spending has been held in check. Montenegro’s ongoing transition to greater economic freedom facilitated impressive average economic growth of over 7 percent during the past five years.

Economic freedom in Montenegro still suffers from insufficient institutional support for property rights and the fight against corruption. The court system remains vulnerable to political interference and inefficiency. External debt has been growing, and government spending needs to be targeted more effectively.