News
Why has Armenia’s construction business dropped?
08.02.2012
In line with the publication of the National Statistical Service of Armenia, the country’s construction business has dropped by 11.5 percent in 2011, in comparison with the previous year. Construction by the state budget, the communities, and the Armenian Apostolic Church has increased.
But the primary reason for the drop is the reduction in the volume of construction financed by the international organizations, and of the construction by private organizations, and individuals.
The organizations account for nearly 45 percent of all construction in Armenia, but there is 13.5-percent drop here. The second largest financer of construction in the country is the state budget, which has increased its funding by 15.2 percent. But the greatest growth is recorded in the communities, with 5.9 times. And the community-financed construction virtually equaled the international organization-financed construction. All international donors have considerably reduced their construction financing, except for the German Development Bank (KfW) which has secured a 2.2 more growth. The volume of Armenian Apostolic Church-financed construction has increased by 13.8 percent, but the residents’ construction activities have considerably dropped by nearly 30.5 percent.
