Announcement

Collapse
No announcement yet.

De-Construction: Building Industry Down 25 Percent; Economic Activit

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • De-Construction: Building Industry Down 25 Percent; Economic Activit

    DE-CONSTRUCTION: BUILDING INDUSTRY DOWN 25 PERCENT; ECONOMIC ACTIVITY DROPS 18 PERCENT FROM SEPTEMBER
    NAZIK ARMENAKYAN

    ArmeniaNow
    22.11.11 | 13:50

    By Sara Khojoyan
    ArmeniaNow reporter

    According to the National Statistics Service of Armenia, the country's
    economic activity was 18 percent less in October than in September.

    The main reason of the decline was the 25-percent drop in construction
    (in the first 10 months of this year, compared to last).

    Economist Ara Nranyan, lawmaker from the Armenian Revolutionary
    Federation (ARF, Dashnaktsutyun) parliamentary faction, says that
    the decline in the construction sector is, in fact, determined by
    the ongoing financial crisis.

    "Even though the Government presents the decline of construction
    sector as a result of the economy's diversification, I do not think
    that the industry actually develops," Nranyan says.

    According to Nranyan, the executive authorities of Armenia have started
    paying less attention to the construction sector, even reducing the
    allotment of funds designated for the industry next year.

    In 2012, four billion drams (about $10 million) will be allotted to
    apartment construction, even though before that more than 20 billion
    drams (about $52 million) was allotted; and as for the general
    construction - 12 billion drams (about $31 million) instead of the
    previous 30 billion drams (about $78 million).

    "Construction is a system creating trend of the economy, and the
    Government, according to us, has taken a wrong course. Instead of
    promoting demand and creating corresponding mechanisms for it, the
    Government has created preferential terms for construction companies
    to finish their work," Nranyan says.

    However, there is a low demand for new apartments and not only
    because the population of Armenia (who inherited homes from the Soviet
    system) does not need apartments. The problem, according to the ARF
    representative, is the absence of a special social welfare oriented
    program, which would give people with low incomes an opportunity to
    buy apartments.

    One such program was Affordable Housing for Young Families initiated
    by the Government three years ago. Under the program only 580 young
    families have been granted preferential mortgage loans.




    From: A. Papazian
Working...
X