Answer to Question #46041 in Economics for Anna

Question

whether or not it is good when a country's GDP heavily relies on construction.

Answer 1

If construction generats significant share of countrie’s GDP, it maintains the required level of employment, reates the infrastructure that is vital for the normal households existence and the functioning of other sectors of the economy. The construction has a big potential for the development of other sectors (primarily with the great added value). But the high GDP dependency on construction threatens that any crisis in the construction industry can lead to a crisis in all sectors of the economy. That’s why it is important to diversify the economy to prevent such kind of risks.