Armenian finance minister links continued construction activity to investment attractiveness

Construction activity in Armenia will continue as long as the country remains attractive for investment and foreigners and Armenian citizens living abroad want to purchase real estate in the country, Finance Minister Vahe Hovhannisyan told lawmakers on Wednesday.

The finance minister added that he finds it difficult to predict how long this process will continue.

MP Hayk Farmanyan, speaking at a meeting of the parliamentary Committee on Financial-Credit and Budgetary Affairs, said that during a meeting with representatives of an International Monetary Fund (IMF) delegation, the construction sector was identified as one of the main risks to Armenia’s economy. He asked the finance minister how long construction growth could continue and contribute to economic growth.

Hovhannisyan said that the government is discussing these concerns with the IMF. According to him, the risks are being assessed, while the Central Bank is taking steps to reduce their likelihood and the potential impact of shocks.

“As for construction, I find it difficult to say how long this will last. But I can say that as long as Armenia remains an attractive place to invest, and many foreigners, as well as Armenian citizens living abroad, want to transfer their funds to Armenia and are buying real estate here, this process will continue,” the minister said.

Hovhannisyan expressed hope that the activity would continue for a long time, emphasizing the need for efforts to increase Armenia’s investment attractiveness.

“It also depends on the extent of the slowdown, but no one can say how it will slow down. That is why we are taking preventive measures so that, in the event of shocks, the impact will not be significant,” he said.