ArmInfo. The World Bank (WB) forecasts for 2019 an increase in the ratio of net foreign direct investment (FDI) to GDP of Armenia from 2% to 2.3%. This was announced on October 21 by economist Inga Galayan during a press conference, referring to the October report of the World Migration and Brain Drain; World Bank Europe and Central Asia Economic Update.
In addition to improving forecasts of GDP growth in Armenia by such international structures as the WB and IMF, I. Galoyan emphasized that a positive guide for foreign investors is also Moody's increase in Armenia's country rating and improved outlook. "Investors look at precisely these estimates, on the basis of which we were able to issue Eurobonds with an issue volume of $ 500 million and a yield of 4.2%. At placement, the demand for Eurobonds was quite high, which indicates the interest of investors in Armenia," the economist stated. The opinion of I. Galayan was supplemented by an economist, MP from the My Step faction Artak Manukyan. He noted that the placement of Eurobonds is certainly an indicator for investment attractiveness. However, according to the lawmaker, Armenia's financial stability and the stability of the country's economy to external challenges also played a role.
In addition, he attached importance to the confidence of local investors in changes in the investment environment, which over time will ensure an increase in foreign investment.
According to him, in the whole history of Armenia, investments were mainly directed to strategically important sectors, in particular, to the energy complex, gas supply, and mining, but now, in his opinion, funds should be invested in production, including the agricultural sector.
''It is very important that we take into account global trends. We should focus on the following questions: what agenda do we have, what to offer investors, what we will do to develop the securities market, etc. I believe that the strategies outlined for 2020 should provide investors with additional incentives. Indeed, at the moment it's clear that our trump card in the world is human capital'', the economist said.
It should be noted that, according to the RA Statistical Committee, the volume of total foreign investments in the real sector of the Armenian economy in the first half of 2019 compared to the same period in 2018 increased by 26.2% (against 12.7% growth a year earlier), amounting to $ 1.5 billion. In the first half of 2019, Russia accounted for 37.6% of the total foreign investment in Russia, and 64.2% of the total FDI.
To recall, according to the WB forecast updated in October, Armenia's GDP growth in 2019 is expected to reach 5.5% (instead of the previously forecasted 4.2%), which will come from the growth of the service sector by 7.4% and the industrial sector by 4.1% , as well as the exit of the agricultural sector from the decline by 0.5% growth.