Expert: it is realistic to ensure a 5% economic growth in case of a reasonable industrial policy

ArmInfo. To ensure a 5% economic growth, Armenia will manage in case of reasonable industrial policy. Answering the question of ArmInfo correspondent during the press conference on July 7, Chairman of the Union of Industrialists and Manufacturers of Armenia Vazgen Safaryan noted.

"If we set ourselves the task of guaranteeing the 5% growth, about which the president spoke, we should pay serious attention to the industrial sphere. And the government in its program ignores the industrial sector, in particular, heavy industry, emphasizing its attention to the development of the light industry," he said. In this context, the expert referred to the indices of the industrial sector of Soviet Armenia, in particular, noting the highly developed branches of engineering and chemical industry. "In 1989, we produced 9,950 metal-cutting machines, of which about 5,408 were exported, and 1,970 units were imported, and the production of compressors was 5,011 units, which were almost completely exported. At the same time, artificial rubber supplies amounted to 50.9 thousand tons, caustic soda - 57.9 thousand tons, plastics 23.8 thousand tons of tires - 1.5 million pieces, etc.," Safaryan said.

According to the expert, today the state should set itself the task of pursuing a unified industrial policy with the Russian Federation. In this regard, he explained that Russia has lost 50% of its industrial potential, while Armenia lost about 80-90%. "However, today Russia does not talk about it so actively," he stressed.  In this regard, the head of the Union referred to certain officials of the Russian Federation in the person of Kudrin, Gref and Chubais, who, according to Safaryan, spread liberal views and hinder the development process. However, in the future, the expert did not rule out the restoration of Russia's status as a powerful industrial country, in which Armenia will be able to integrate its potential. "Because the Armenian and Russian industries - have a single production culture, and our product there is in demand," he said.

According to the National Statistical Service of Armenia, the volume of industrial production in Armenia in 2016 increased by 6.7% (against growth of 5.2% in 2015), amounting to 1.429 trillion AMD ($ 2.9 billion).  The slight acceleration of the growth rates was due to a sharp slowdown in the upward trend of the mining sector, from 50.4% in 2015 to 8.3% in 2016 - to 256.4 billion AMD, while improving the dynamics of the manufacturing industry - with an exit from the 5.6% decline by 7.7% growth - up to 885 billion AMD. The volume of industrial production in Armenia in January-May 2017, by the same period of the previous year, increased by 14.4% (against growth of 8.8% a year earlier) to 625.1 billion AMD ($ 1.3 billion). Moreover, the upward trend of industrial production sector of Armenia is supported by the growth of mining and processing industries by 12.5% and 20%, respectively.