Monday, October 21 2019 19:53
Alina Hovhannisyan

Economist: WB forecasts an increase in the ratio of net FDI to GDP of  Armenia from 2% to 2.3% for 2019

Economist: WB forecasts an increase in the ratio of net FDI to GDP of  Armenia from 2% to 2.3% for 2019

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. 

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Government Bonds

Issue volume

10 billion

Volume of T-bills for placement

200 million

Volume of submitted competitive applications

200 million

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200 million

Yield at cut-off price

 5.8314%

Maximum yield

 5.8314%

Мinimum yield

 5.8314%

Weighted average yield

 5.8314%

Number of participants

2

The maturity date of T-bills

03.02.2020

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