Armenian MP warns of downturn in construction sector

Opposition MP Artur Khachatryan has described a new legislative proposal as “the first warning sign” of a decline in Armenia’s construction market. Speaking at a parliament session on Tuesday, Khachatryan argued that the country’s economic growth has been heavily dependent on construction and warned of “difficult times ahead with slowing economic growth”.

The proposed amendment to the law on state duty, introduced by ruling Civil Contract party MPs Sergey Bagratyan and Narek Ghahramanyan, seeks to raise the import duty on metal reinforcement bars from 29 to 45 times the base rate, or roughly from 29,000 to 45,000 drams per ton. The move comes after a sharp fall in Iranian rebar prices due to the depreciation of Iran’s currency following the Iran-Israel conflict, a change that, lawmakers said, created unequal competition between local producers and importers.

Khachatryan, who represents the opposition Hayastan faction, likened the measure to earlier tariff adjustments on cement clinker, saying both aim to “protect domestic manufacturers in a shrinking market”. He added that while construction had boomed in Yerevan thanks to tax incentives, “the regions have not experienced the same surge” and recent data do not support claims of a broader construction boom.

Parliamentary committee discussions led to revisions of the bill, reducing the initially proposed rate from 55 to 45 times the base duty, after considering the concerns of manufacturers and market realities.