Republic of Armenia

Public capital stock declined from 160 percent of GDP in 2000 to 62 percent of GDP in 2017. Public investment has remained low at approximately half of that invested by regional peers since 2012.1 This can be explained—to some extent—by a faster growth of recurrent spending at the expense of capital expenditure. As a result, Armenia ranks the mid-range of comparator countries in terms of the public capital stock. For the last three years, public investments have started to pick up through large energy and road projects, but this has been unable to reverse the declining trend of public capital stock