Expert: Political stability is very important for investors

ArmInfo. Political stability is very important for investors, Dmitry Radyshevsky, doctor of philosophy and political analyst, told ArmInfo's correspondent.

According to the political scientist ensuring protection of investments is the key factor for increasing investment flows into the country. Radyshevsky thinks that the investors when considering Armenia weigh up whether there will be escalation in relations with Azerbaijan. In order to dispel these apprehensions political process should be continued, as Western investors want to see continuation of political process over Karaabkh and not escalation of conflict. "Everyone realizes that the problem has deep historical roots and it is impossible to solve it fast. However, they do not want to see it frozen and need certain stability.  The politicians should hold political dialog for this purpose to calm down investors and give them strong signal that they can come to Armenia and there will be no war in the country the day after", the political expert stated.

Dmitry Radyshevsky is sure that Baku is not interested in escalating the conflict all the time as realizes that this will influence investment climate in Azerbaijan. In this context according to the expert the intention is mutual and bilateral political process on maintaining stability in Karabakh is important. 

To note, this year the share of foreign investments in Armenia declined to 1.7% from the GDP. According to the National Statistical Service of Armenia net flow of investments into real sector of Armenia's economy was negative by July 1 2016 -16.9 bln drams, net flow of FDI is positive-16.6 bln drams (versus positive 81.9 bln drams and 30.7 bln drams a year before). To note, for already two years due to revision of methodology of investments calculation the statistical data does not provide absolute values of inflow and outflow, mentioning only amount of balance of these two figures-net flow of investments.