ArmInfo. Armenian will close the fiscal year of 2022 with at best a 5%-5.5% growth and this year with a 5% growth, Vahen Hakobyan, Chairman of the Standing Committee on Economic Affairs and member of the Hayastan (Armenia) opposition bloc, stated at the parliamentary debate over the 2022 draft budget.
Armenia`s financial authorities have hastily budgeted a 7% GDP growth for 2022. Such expectations are unrealistic, Hakobyan said.
"Capital investments are expected to be increased by over AMD 130bln, (up to AMD 352bln) next year, with the government failing to fulfill this year`s capital expenditure budget - about 30% has not been allocated. It is obvious that the 7% GDP growth target will not be met," Hakobyan said. The MP recalled the promise by the minister of economy to close the 2021 fiscal year with a double-digit GDP growth. "In our conditions, closing the year with 5% would be a good indicator," the MP said.
The draft budget must contain a roadmap that would show the ways the government is ensuring a 7% GDP growth. "I propose lowering the threshold down to 5.5%," the MP said.
Tadevos Avetisyan of the same bloc pointed out high inflation rates (9.6% in 2021) and the financial authorities` unwillingness to index the pensions and allowances to inflation. According to him, the 2022 draft budget is "obviously anti-social."
The government programme for 2021-2026, as well as in 2022 draft budget, sets a 7% GDP growth target and, in a favorable external environment, a 9% GDP growth target. Moreover, Armenia`s government states "the economy has entered a recovery stage this year", with a 6.5% GDP growth is expected this year against the budgeted 3.2%. The government expects the economic growth to be due to the services sector and, in 2022, due to accelerated growth in the industrial and construction sectors. However, speaking of the lower economic growth rates in Armenia in Parliament on November 17, the minister of finance stated that the authorities were expecting only 6% GDP growth this year.
