Armenia Industry Sectors
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Armenia has a highly developed industrial sector. After the disintegration of the Soviet Union, Armenia industry sectors diversified to include modern manufacturing units and booming construction sector. Armenia exports heavy machines, textiles and consumer goods.[br]
Armenia has a highly developed industrial sector. After the disintegration of the Soviet Union, Armenia industry sectors diversified to include modern manufacturing units and booming construction sector. Armenia exports heavy machines, textiles and consumer goods.[br]
Armenia Industry Sectors: History
Armenia industry sector was quite developed, even during the Soviet era. The country had chemicals, heavy machinery, rubber, food processing and electronics industries. However, during that period industrial production was dependent on financial assistance from the Soviet government. Following the disintegration, agriculture gained importance. The Armenian government invested in agricultural production to ensure food security.
As the economy stabilized from the disintegration aftereffects, the industrial sector began to take shape in the country. By 2000, the share of agriculture in GDP reduced to approximately 20%. However, it continues to engage more than 40% of the labor force.
Major Armenia Industry Sectors
The Construction sector secured the largest growth among Armenia industry sectors, during the year 2006-07. It solely accounted for more than half of the total GDP. The construction sector boom had a multiplier effect on the nation’s economy. It has helped reign in unemployment and resulted in lesser dependency on agricultural production. The construction sector boom is influenced by two factors:
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It offers good return on investment.
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Armenia offers tax benefits for investment in the construction sector[br]
In the year 2006-07, the mining industry enjoyed the highest growth rate after the construction sector. It was followed by the manufacturing and electricity industries. Low growth rate of the manufacturing sector is attributed to low export volumes. With an increase in import volume, the value of Armenian Dram surged in the international market. Thus export remained low.
Over-reliance on the construction sector is one of the impediments for the Armenian economy. The country has to develop export-oriented sectors for its long-term economic growth. The construction sector boom cannot ride the economy for a prolonged period.
