This Systematic County Diagnostics isorganized into six parts. The first part presents a briefoverview of the country’s recent socio-political andeconomic context. The second part examines the links betweenpoverty, income distribution and economic growth, throughthe labor market, against the background of large changes ininternational capital flows and the unfinished structuralreform agenda. The third part, examines the sustainabilityand vulnerability of the current growth model. The fourthpart examines the structural constraints to sustainable andinclusive growth and poverty reduction, while the fifth partreviews the governance and the rule of law foundations. Theassessment of each constraint is followed by a descriptionof what the Government of Montenegro (GoM) is doing toaddress the issue. The sixth part examines priorities and opportunities.