The usual slump
Decrease in the field of construction has already become usual. The then driving force of economy started to rush down from 2009 and the process continues until now. Upon the data of National Statistical Service of Armenia construction volumes comprise AMD 397.6 billion in 2016, which is less by 10.8% from previous year’s index.
• construction volume (mln AMD) ◌ change compared with the previous year (%)
As we may see from the Chart, construction hasn’t recorded decline only twice since 2009: it grew by 0.2% in 2012, and by 0.3% in 2015. And by current prices construction volume implemented in 2016 was less only 12 years ago—in 2004.
And if we compare the area of commissioned buildings, then decline is deeper—about 20%.
The lowest index—66.9% was recorded on account of construction implemented by state budget means. State construction amounting AMD 38.4 billion has been implemented in the period of 2016. Construction implemented through communities has decreased by 3.8%. 46.8% of total construction volume (around AMD 186 billion) has been implemented on account of means of organizations. Compared with the previous year construction of organizations decreased by 8.6%.
Construction implemented through means of population reduced by 11.6% compared with 2015 and comprised around AMD 100 billion, which comprises ¼ of total. The only source, where construction volumes have increased, is international loans. It grew by 28.3%, thus, amounting around AMD 60 billion (15% of total).
AMD 25.4 billion is shared by Asian Development Bank (construction of North-South Corridor), AMD 21.8 billion—to the World Bank. Construction volumes implemented on account of ADB and WB have grown respectively by 38% and 31.5%, i.e. if not loans means, construction slump would be even deeper in 2016.
Previous year’s (2015) at least weak, but growth (0.3%) gave hope, that finally, construction is coming out from the decline period. However, as it’s observed the field doesn’t intend to come to its senses.
By Babken Tunyan
