Decline in construction impedes economic growth in Armenia

YEREVAN, November 4. /ARKA/. An 8.5% decline in construction recorded in eight months of 2013 is the main obstacle on the way of economic growth in Armenia, Armenia’s prime-minister Tigran Sargsyan said at the meeting of the trustees’ board of the country’s National Competitiveness Foundation.

The share of construction in the country’s GDP is 12%, Sargsyan said as quoted by the government press office.

The premier said the government will focus on construction sector in 2014.

“We are developing programs to substantially promote the field”, he said. Particularly, projects on economy class housing construction are expected to be implemented.

High growth rates have been recorded in mining and processing industries, as well as in agriculture due to private investments and government support, the premier said.

According to Sargsyan, quality of the processing industry has improved and exports increased. This shows the private sector-government partnership is producing results, the premier said.

Among the 2014 measures to boost economic growth and improve the business environment are liberalization of aviation and creation of a venture fund, Sargsyan said.

The prime-minister also stressed the importance of operation of the export insurance company, the Industrial Fund and the Small and Medium Entrepreneurship Development National Center. 

The premier reminded Armenia ranked 37th in Doing Business-2014 and said business environment improvement reforms will be continued.

The head of the government also touched upon the pension reform and the new government program for poverty reduction. –0--