ArmInfo. "I will not forgive myself if this year we do not provide double-digit indicators for economic growth," Minister of Economy Vahan Kerobyan said in an interview with the Public Television of Armenia.
He stressed that, despite the restrained forecasts of the Ministry of Finance (economic growth by 4.8% - ed. note), the Ministry of Economy has more ambitious, aggressive plans, which it intends to implement this year.
Kerobyan explained that after two months, a new economic program will be developed, which will meet both internal and global challenges. "Our policy will be aimed at transforming the economy into a knowledge-based one. I know all the gaps and barriers that the business segment in Armenia faces. And we must work on brands, marketing, creation of products aimed at global peace, "the minister said. He noted that over the past 11 years, a so-called export-oriented policy has been operating in Armenia, however, de facto, everything that was carried out during this time was rather against exporters than in support of them.
In this vein, the head of the economic department said that today the ministry is drafting a large-scale business assistance program. Going into details, Kerobyan said that he means a debt instrument that will allow business to operate without obstacles in 2021. "It remains for us to convince our colleagues from the Ministry of Finance and the Central Bank," he added.
At the same time, the minister reported on some disagreements with the Ministry of Finance related to the provision of tax incentives to businesses. "The Ministry of Finance is trying to maximize taxes, which will make life difficult for small businesses. And we know a method of how to simplify the life of a business, while increasing the level of income to the state budget. This will be a more efficient way than raising taxes. Because such tightening leads to a shadow economy, "the minister said. To recall, the Central Bank further worsened the forecast for the decline in Armenia's GDP in 2020 - to 7.2% from the previous 6.2%. According to the World Bank's forecast for 2020 updated in October this year, Armenia's GDP is expected to decline by 6.3%, against the previously expected 2.8% and actual 7.6% growth in 2019. In 2021, the WB expects Armenia's GDP to grow by 4.6%. In its November forecast, the IMF expects Armenia's GDP to fall by more than 7% in 2020, with modest growth in 2021. According to the Statistical Committee of the Republic of Armenia, the decline in economic activity in January-November 2020 has already deepened to 7.2% per annum, and in November alone the decline was 10.2%, and almost the same decline was recorded in comparison with November 2019 - 10.3%
