Economic
Central Bank Warns of Risks in Armenia's Construction-Led Growth
The Central Bank of Armenia highlights mounting risks from an economy growing heavily reliant on construction and selective service sectors, urging diversified growth and policy caution.
In a recent statement issued on March 22, 2026, the Central Bank of Armenia cautioned that the country’s robust economic momentum is increasingly concentrated in construction and a narrow range of services, creating structural vulnerabilities. While official data shows 9.1% growth in 2025 and strong January activity, the bank stresses that generous credit expansion into construction and uneven wage gains could heighten inflation pressures and financial imbalances. Officials note that wage growth in the private sector, inflation in fixed‑price services, and overall inflation expectations are showing signs of stabilization, but warn that continued concentration in a few sectors may undermine long‑term stability. The bank is urging authorities to encourage broader industrial and export‑oriented diversification to reduce reliance on domestic demand and maintain sustainable growth.
- Status
- active
- Location
- Yerevan, Armenia
- Date added
- 2026-03-22 21:02 UTC
- Last updated
- 2026-03-22 21:02 UTC
- Source
- ARKA News
- Connected threats
- Not provided