Institutional Framework, Current Investments and Future Strategic Direction for Development of Construction Sector in Montenegro

Abstract Even though it entered the privatization process unprepared, and despite the privatization process leading to the collapse of a vast number of the largest construction companies, the construction sector in Montenegro has undergone a significant expansion in the period between 2005-2008. This was possible thanks to the opening of the Montenegrin market and creation of a favorable investment climate and a large inflow of foreign direct investment. However, the global financial crisis and a recession in the developed market economies after the mentioned period was affected by the slowdown of economic growth in Montenegro including the construction industry.