Monday, October 25 2021 17:29
Alina Hovhannisyan

CBA: Large-scale state investments will provide 7% GDP growth in  Armenia in 2022 

CBA: Large-scale state investments will provide 7% GDP growth in  Armenia in 2022 

ArmInfo. According to the Central Bank, the state budget program for 2022 is quite saturated, and in comparison with the medium-term government spending program,  it provides for strengthening capacity and accelerating economic  growth. Deputy Governor at Central Bank of Armenia  Nerses Yeritsyan  stated during the discussion of the draft budget for 2022 in the  Parliament of the Republic of Armenia,.

In particular, he noted that next year's draft budget is expected to  grow by 7% of GDP, which will be based on large-scale state  investments in infrastructure and in the development of human  capital, as well as measures to stimulate exports, which will help to  increase the country's competitiveness and overall performance.

Referring to the assessment of the Regulator, Yeritsyan noted that in  2022 the acceleration of the recovery of gross demand will continue,  which will be conditioned by the growth of external and internal  demand.  However, compared to 2021, the growth in domestic demand  will be triggered by the government's policy of stimulating  investment, high growth in both public and private investment.

"From the point of view of the impact on the potential of the  economy, we attach importance to a more detailed description and  discussion of measures and actions that stimulate investment and  exports within the framework of the state budget program," said the  deputy chairman of the Central Bank.  At the same time, he said that  in 2022, the Central Bank expects that the ratio of taxes to GDP will  increase by 0.9% growth, in the conditions of which tax revenues on  gross demand will have a restraining effect; the budget deficit will  be reduced by 1.6 percentage points, amounting to 3.1%; public debt  will decrease by 0.7 pp. amounting to 60.2%.

At the same time, Yeritsyan noted that in the event of problems  related to the full implementation of the capital investment program  and their efficiency, and the stimulation of private investment, in  the medium term, significant risks may arise associated with economic  growth, debt and fiscal stability.  It should be noted that according  to the data of the Ministry of Finance of the Republic of Armenia,  for 9 months of 2021, the state debt of Armenia increased by $ 1.069  billion, reaching the level of $ 9.038.1 billion 973 million at the  end of September 2021, Armenia will have to send almost $ 1.4  billion. At the same time, over the 28-year history (since Armenia  gained independence), the country has attracted loans totaling about  $ 6.8 billion, and over the past three years " managed to "increase  the national debt by another $ 2 billion 106 million. In  January-September 2021, the government debt increased from $ 7  billion 508.5 million (by the end of 2020) to $ 8 billion. 564.5  million - about $ 1 billion 056 million or by 14.1%. 


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