Monday, June 19 2017 17:22
Naira Badalian

Armenian government has set targets for economic growth for next 5 years

ArmInfo. The purpose of the Armenian government is to ensure an average annual growth of the economy of 5%. This is stated in the officially published program of the Government of Armenia, submitted for approval by the National Assembly of Armenia.

As stated in the proposed program, during 2017-2022. The Armenian government pretends to reach outperforming in comparison with many developed countries of the world economic growth by providing an annual GDP growth of 5% on average.

The program proposes activities aimed at ensuring the business environment in the Republic of Armenia.  "Armenia is a country with small market volumes and its competitiveness is due exclusively to the opportunities of its economy in foreign markets," the program says. Armenia is instructed to be guided by the economic model based on demand, in which the growth of exports can be the locomotive of growth up to 40-45% in the country's GDP. To implement the planned programs, it is proposed to diversify the real sector of the economy and markets. The government's consistent steps to improve the business environment, as is noted, should lead to a simplification of administration and transparency of services provided by the state.

Within the framework of the activities, the Government of Armenia, in the context of the next 5 years, claims to be in the top 20 out of 190 countries of the world in the rating of the World Bank Doing Business.  When implementing complex measures to improve the business environment of Armenia, it is expected that, with all other equal conditions, through the envisaged activities aimed at alleviating the administrative burden for business, reducing corruption risks, increasing the transparency of services provided to the private sector by moving them to the online site , and improvement of the legislative base, in the Doing Business index the republic will rise from the 38th place and take the position among the first 20 countries of the rating.

Consecutive steps are also planned to protect the interests of investors, by improving the relevant legislative framework, as well as initiating institutional reforms. According to the program, investment programs aimed at inclusive growth and creation of new jobs will be supported by the executive body.

There is also a reduction in the unemployment rate by 12 percentage points envisaged, with a parallel increase in employment and wages, with an increase in the nominal minimum wage by 25%.

As a result of planned activities for 2017-2022 aimed at developing tourism in the country, the Armenian government also intends to increase the number of tourists visiting the republic to 3 million per year. In particular, until 2018, it is expected to establish new quality criteria for travel services and the introduction of a register on tourism until 2019. By the end of 2020, it is planned to complete the work on the creation of a single reference network for tourism in the Republic of Armenia, and the Concept on Ecotourism will be developed and approved by the same date.

To note, according to the National Statistical Service of Armenia, per capita GDP in Armenia increased by 8.7% per annum in the first quarter of 2017 - up to 325,727 AMD ($ 671/629 EUR). According to the IMF, Armenia ranked 115th ($ 3511) in the ranking of countries in terms of GDP per capita in 2016, published in April 2017. According to experts of the World Bank, when carrying out economic reform, GDP per capita until 2020 will remain at the same actual level of $ 4 thousand, with a tendency to increase in 2030 to 6 thousand, and in 2050 experts provide per capita GDP exceeding $ 12 thousand. Whereas, according to the actual scenario, this indicator will not exceed $ 8 thousand. At the same time, the poverty level under the reform scenario from the current 30% will decrease to 25% by 2020, by 10% by 2030, and by 2050 will be reduced to a minimum- 0.2-0.3%. If the reforms are not carried out, WB experts predict poverty in Armenia in 2050 at the level of 7-8%.

As for expectations regarding the growth of wages in Armenia, the head of the Armenian Ministry of Finance Vardan Aramyan had previously doubted this question. On March 22 (before the April parliamentary elections in Armenia) he called election promises of political parties about the increase of pensions and wages to be obviously unrealizable. "Already, AMD 446 bln is allocated from the state budget to pay employees of the budget, in the case of wage increase, an additional 250-350 bln AMD will be required, about 260bln AMD are annually allocated for the payment of pensions, and the promised changes will require 130-140 bln AMD For the state budget of Armenia - an unequivocal challenge," Aramyan said. "A reasonable question arises if, with maximum effort, we will raise salaries and pensions for a year, increasing the budget load of 500-600 billion AMD, how are we going to stabilize this issue in the medium term?" By increasing the tax burden by over 10% over the year, or heavier debt burden, I think this is a very dangerous path," the minister said. Meanwhile, according to the February forecast of the Central Bank of Armenia, in 2017 the average nominal wage is expected to grow by 1.5%, with the acceleration of the rate in 2018 to 3.6-4% and in 2019 to 4.8-5.2% ( Against the previously projected 2%, 5% and 6.2% in 2017 - 2019).

To note, in the state budget of Armenia for 2017 the GDP growth is 3.2%. Meanwhile, the World Bank (WB) predicts GDP growth of Armenia in 2017 by 2.7% with the acceleration of rates in 2018 to 3.1%, in 2019 - up to 3.4%. The state budget of Armenia for 2017 laid the GDP growth by 3.2%. According to the updated forecast of the Central Bank of Armenia, GDP growth in Armenia in 2017 will be 3.2-4.4%, according to the IMF forecast of 2.9%, according to Fitch forecast - 2.1%, EDB - 2.9% and Asian Development Bank - 2,2%.


News
Iranian entrepreneurs are interested in opening joint ventures with  Armenia in a number of areasIranian entrepreneurs are interested in opening joint ventures with  Armenia in a number of areas
Major Armenian-Russian business forum to be held in YerevanMajor Armenian-Russian business forum to be held in Yerevan
Gyumri Shirak Airport is ready to serve European budget flightsGyumri Shirak Airport is ready to serve European budget flights
Mher Grigoryan reports on certain difficulties in negotiations with  GazpromMher Grigoryan reports on certain difficulties in negotiations with  Gazprom
Standing Parliamentary Committee on Financial-Credit and Budgetary  Affairs approved Artak Manukyan`s candidacy for the position of  member of the Central Bank CouncilStanding Parliamentary Committee on Financial-Credit and Budgetary  Affairs approved Artak Manukyan`s candidacy for the position of  member of the Central Bank Council
Mher Grigoryan: In terms of the opening of railways, solutions began  to be consideredMher Grigoryan: In terms of the opening of railways, solutions began  to be considered
GeoProMining  announces  completion of the second stage of Agarak CMC  modernization project GeoProMining  announces  completion of the second stage of Agarak CMC  modernization project 
IMF sharply improved its forecast for GDP growth in Armenia for 2021 to 6.5%, but warns: IMF sharply improved its forecast for GDP growth in Armenia for 2021 to 6.5%, but warns: "Downside risks remain elevated" 
Economy Minister considers Central Bank`s updated economic forecasts  as pessimisticEconomy Minister considers Central Bank`s updated economic forecasts  as pessimistic
Armenian government to allocate about 357.5 million drams to complete  15 subvention programsArmenian government to allocate about 357.5 million drams to complete  15 subvention programs
Economy Minister on the situation with Iranian trucks: We have a  Economy Minister on the situation with Iranian trucks: We have a  "Plan B"
 Armenian accountants and auditors can grow professionally with help  of British Association of Chartered Certified Accountants Armenian accountants and auditors can grow professionally with help  of British Association of Chartered Certified Accountants
Armenian government approves the ratification of the Agreement of the  CIS countries in the fight against IT crimesArmenian government approves the ratification of the Agreement of the  CIS countries in the fight against IT crimes
Armenia and Singapore exclude double taxationArmenia and Singapore exclude double taxation
Government of Armenia ratified the agreement between the governments  of the Republic of Armenia and the Republic of Malta on the avoidance  of double taxationGovernment of Armenia ratified the agreement between the governments  of the Republic of Armenia and the Republic of Malta on the avoidance  of double taxation
The leadership of SRC of Armenia at a meeting with the head of the  FCS of the Russian Federation noted the special importance of  enhancing contactsThe leadership of SRC of Armenia at a meeting with the head of the  FCS of the Russian Federation noted the special importance of  enhancing contacts
American company Wabtec shows interest in the Armenian market American company Wabtec shows interest in the Armenian market 
Deputy Prime Minister on a possible increase in gas prices: Gazprom  insists that the amount of profit stipulated in the 2013 agreement  does not satisfy themDeputy Prime Minister on a possible increase in gas prices: Gazprom  insists that the amount of profit stipulated in the 2013 agreement  does not satisfy them
Drip irrigation. 5 questions and answers with Converse BankDrip irrigation. 5 questions and answers with Converse Bank
World Bank`s updated Groundswell report warns: Climate change could  force 216 million people to migrate within their own countries by  2050World Bank`s updated Groundswell report warns: Climate change could  force 216 million people to migrate within their own countries by  2050
Expert: The unprecedented rise in gas prices in Europe and EAEU  membership open new opportunities for ArmeniaExpert: The unprecedented rise in gas prices in Europe and EAEU  membership open new opportunities for Armenia
Central Bank of Armenia: In Jan-July 2021, the net inflow of  transfers from individuals increased by 78.5% per annumCentral Bank of Armenia: In Jan-July 2021, the net inflow of  transfers from individuals increased by 78.5% per annum
Efforts are underway to enhance seismic safety at Armenian NPPEfforts are underway to enhance seismic safety at Armenian NPP
EEC Forecast: In 2022, the negative foreign trade balance in the EAEU  will be reduced from $ 5.8 billion to $ 2.5 billion EEC Forecast: In 2022, the negative foreign trade balance in the EAEU  will be reduced from $ 5.8 billion to $ 2.5 billion 
Central Bank of Armenia: Consistent tightening of monetary conditions  has a sufficient impact on the regulation of progressive consumer  demand and on curbing of  inflationCentral Bank of Armenia: Consistent tightening of monetary conditions  has a sufficient impact on the regulation of progressive consumer  demand and on curbing of  inflation
Central Bank upgrades Armenia`s economic growth forecast for 2021 to  5.6%Central Bank upgrades Armenia`s economic growth forecast for 2021 to  5.6%
Central Bank Governor: Inflation in Armenia is more supply-drivenCentral Bank Governor: Inflation in Armenia is more supply-driven
Central Bank: Transfers from USA to Armenia are growing rapidlyCentral Bank: Transfers from USA to Armenia are growing rapidly
Armenia and Ukraine launched the improvement of trade and economic  relationsArmenia and Ukraine launched the improvement of trade and economic  relations
Official and real y-o-y inflation continues to accelerate in ArmeniaOfficial and real y-o-y inflation continues to accelerate in Armenia
Central Bank of Armenia once again raised the refinancing rate - from  7% to 7.25%Central Bank of Armenia once again raised the refinancing rate - from  7% to 7.25%
About 2 billion drams to be allocated for the installation of  photovoltaic stations in seven regions of ArmeniaAbout 2 billion drams to be allocated for the installation of  photovoltaic stations in seven regions of Armenia
"Veolia Djur" proposes to increase water tariff by 43.7 drams
Mher Grigoryan: Trade and economic relations between Armenia and  Ukraine have great potential for developmentMher Grigoryan: Trade and economic relations between Armenia and  Ukraine have great potential for development
"Become a shareholder": ACBA Bank issued its first 500.000 shares  with a total volume of 7.5 billion drams
IDBank as a sponsor of the charity concert IDBank as a sponsor of the charity concert "Armenian Rock for Children with Cancer"
As of September 10, 2021, tax collection exceeded indicators of  pre-crisis 2019 by 4.9% in ArmeniaAs of September 10, 2021, tax collection exceeded indicators of  pre-crisis 2019 by 4.9% in Armenia
The collector coin dedicated to the 30th anniversary of the Republic  of Armenia has been issued by Central BankThe collector coin dedicated to the 30th anniversary of the Republic  of Armenia has been issued by Central Bank
Minister of Finance of Armenia and Ambassador of India discussed  possible directions for development of cooperationMinister of Finance of Armenia and Ambassador of India discussed  possible directions for development of cooperation
 Construction of Construction of "Friendship Bridge" on Armenian-Georgian border is in  full swing
Armenia reduced exports of molybdenum, zinc and copper concentratesArmenia reduced exports of molybdenum, zinc and copper concentrates
Armenia increased export of all alcoholic beverages produced in  countryArmenia increased export of all alcoholic beverages produced in  country
Armenia significantly increased volume of exports and imports of  fruit and berry cropsArmenia significantly increased volume of exports and imports of  fruit and berry crops
Armenia in H1 2021 increased grape exports by 66.7% Armenia in H1 2021 increased grape exports by 66.7% 
Regular meeting of Armenian-German intergovernmental commission took  place in BerlinRegular meeting of Armenian-German intergovernmental commission took  place in Berlin
Exclusive opportunity for VISA Signature cardholders of Converse BankExclusive opportunity for VISA Signature cardholders of Converse Bank
Armenia significantly reduced sugar importsArmenia significantly reduced sugar imports
Imports of oil products to Armenia grew by 3.7% in the first half of  2021Imports of oil products to Armenia grew by 3.7% in the first half of  2021
Armenia continues to reduce imports and exports of passenger carsArmenia continues to reduce imports and exports of passenger cars
Expert: Institutional solutions are needed in the development of  public-private dialogue (PPD)Expert: Institutional solutions are needed in the development of  public-private dialogue (PPD)
Diamond exports from Armenia have increased several-foldDiamond exports from Armenia have increased several-fold
Online processes will replace paperwork and the need to visit customsOnline processes will replace paperwork and the need to visit customs
About 100 thousand residents of 5 regions of Armenia will receive  round-the-clock water supplyAbout 100 thousand residents of 5 regions of Armenia will receive  round-the-clock water supply
Public-private dialogue is not going well in ArmeniaPublic-private dialogue is not going well in Armenia
YOY inflation in Armenia reaches 8.8% in August 2021YOY inflation in Armenia reaches 8.8% in August 2021
Armenia cuts gold exports, increasing importsArmenia cuts gold exports, increasing imports
Exports grow faster than imports in Armenia`s foreign trade with the  EU countries- 41% versus 11%Exports grow faster than imports in Armenia`s foreign trade with the  EU countries- 41% versus 11%
Armenia`s foreign trade turnover with EAEU countries reaches  double-digit growthArmenia`s foreign trade turnover with EAEU countries reaches  double-digit growth
As of the end of August, 488 thousand tourists visited ArmeniaAs of the end of August, 488 thousand tourists visited Armenia
Armenia slightly reduced the export of aluminum foil in H1, 2021Armenia slightly reduced the export of aluminum foil in H1, 2021
Read more


Exchange rates
17.09.2021
RUB6.68-0.04
USD484.93-1.44
EUR571.39-1.07
GBP668.43-3.64
CAD383.25-1.51
JPY44.10-0.35
CNY75.15-0.46
CHF523.12-3.31