Serzh Sargsyan: Armenia continued to develop during the recent 9 years withstanding such economic shocks that can be compared with Great Depression of 1930ies

ArmInfo. Armenia keeps focus on  the issues related to the country's economy, efficient response to  existing challenges, as well as ensuring long-term social-economic  development, Armenia's President Serzh Sargsyan stated at the 16th  session of the ruling Republican Party held on November 26. 

According to the President so-called immunity of Armenia has  experienced numerous changes within the recent years. Sargsyan stated  that the Republic managed to develop all the necessary institutions,  which working like a spring significantly mitigate influence of  negative external factors. It is due to this that Armenia managed to  ensure progressive economic growth. Particularly, according to the  President Armenia ensured real economic growth within 29,3% in  2007-2015, while according to the International Monetary Fund the  growth totaled 32%.  Meanwhile, he noted that in the European  countries the growth in the same period totaled 8,9%, while in CIS  countries 22,4%.  ''Armenia continued to develop during the recent 9  years withstanding such economic shocks that can be compared with  Great Depression of 1930ies '', Sargsyan stated. 

In these conditions Armenia managed to open new horizons of the  country's development, change the structure of economy making it more  diversified. According to Sargsyan Armenia increased the share of  export in the structure of the country's trade turnover.  ''Particularly, if in 2006 Armenia's export totaled $985mln, in 2015  this figure reached $1 bln 485 mln, while in the 9 months of 2016 it  totaled $1,3 bln'', the President stated emphasizing that such a  level of export was ensured due to the economic policy chosen by  Armenia. 

The President noted that dependence on foreign currency transfers has  gradually yielded to development of domestic economy. As a result in  2007-2015 the real growth of wages of working citizens made 39.2%.  This became possible not only due to ensuring real economic growth  but also stability of prices during the world financial crisis, which  according to Sargsyan is Armenia's crucial achievement. "Within the  recent years Armenia registered growth of minimal monthly wage: if in  2007 it totaled 20 thousand drams, today it has reached 55 thousand  drams registering 2.8-fold growth", Sargsyan noted. 

"Wages in state sector have also significantly grown", the President  continued. Average monthly salary in the state sector totaled 60985  drams in 2007.  As a result of 9 months of 2016 it already totaled  160688 drams. Average wage in private sector totaled 214169 drams in  the same period, versus 90879 drams in 2007, thus 2.4-fold growth has  been registered''. 

Serzh Sargsyan stated that pensions have also significantly grown: in  2016 average pension exceeded 42 thousand drams versus 12746 drams in  2007. "Thus, within the 9 years the average amount of pension  increased 3.3-fold", he noted. 

Deposits of residents and non-residents of the country as well as  economic entities totaled 1,6 trln drams in September 2016,  registering 5,8-fold growth. The President noted that deposits of  physical entities alone totaled about 1 trln drams, while amount of  guaranteed deposits of the Deposit Guarantee Fund exceeded 1,8 mln. 

At the same time Sargsyan admitted that relatively low level of  poverty in Armenia was mainly determined by incomes transferred to  Armenia by labor migrants, as a result the amount of consumption grew  in the country. However, financial crisis had negative impact on the  transfers. Amount of personal transfers sent to Armenia totaled $2.3  bln in 2008. However, in 2009 it sharply declined and totaled $1.6  bln, while in 2015 transfers declined by $500mln. This year also  decline of transfers has been registered, Sargsyan noted. 

"In 2010 population poverty level totaled 35.8%, in 2015 due to  consistent efforts the poverty level was reduced to 29,8%. Thus, the  level of poverty determined by drop of external inflows, was reduced  due to real growth of domestic economy'', the President stated. 

Serzh Sargsyan stated that for increasing the level of population's  well-being a number of programs have been implemented. Particularly,  system of social packages and programs on providing affordable  housing to young families were implemented. 

"Are we really satisfied with the achieved results? Of course, not",  stated the Armenian President. Otherwise, he continued there would be  no reason to discuss need of conducting reforms. Moreover, increase  of the state's debt burden was the price for creating internal  potential. However, first and foremost the borrowed foreign debt  served its main goals:first, economy survived in non-favorable  financial conditions and secondly, the main part of the borrowed  funds are invested in infrastructure programs, such as North-South  road corridor and the country's security, these funds were not spent  on operational expenses", Serzh Sargsyan stated.