Monday, March 6 2023 18:00

ArmInfo.If the exchange rate does not contribute to the expansion of the exportable sectors of the economy, the Central Bank will have no choice but to start relying on the Government. Former Minister of Finance of Armenia, director of the Institute of Economics and Business of the RAU, Doctor of Economics. Edward Sandoyan expressed a similar opinion during the RAU Global Forum. In such a case, as the economist further noted, the authorities will have to use fiscal mechanisms to stimulate exportable sectors of the economy.

He explained that today the expansion of exports is associated with  well-known geopolitical events. "This is the export of goods and  services not produced in Armenia, but we will conditionally call it  re-export.  This is an expansion of the service sector, but not only  the gaming business, etc., but also the catering, hotel business>,  Sandoyan said. He noted that this trend, in turn, led to a sharp  increase in prices for rental property and real estate. The economist  noted that the current situation has both its positive and negative  aspects. At the same time, in this context, he stressed: " But the  most dangerous thing will be if this process stops and the exchange  rate does not stimulate the expansion of exports." Noting that  mortgage lending in Armenia is growing at a frantic pace, the  economist drew attention to the fact that the institution of income  tax refund has already reached 40 billion drams a year. ,  the ex-minister of finance noted.  According to the RA Statistical  Committee, Armenia's foreign trade turnover reached $14.1 billion in  2022, with an increase of 68.6% (from 17.7% in 2021). In particular,  an increase in volumes was observed both in exports - by 77.7% to  $5.4 billion, and in imports - by 63.5% to $8.8 billion, while in  2021 both of them showed moderate growth - exports by 19.1% and  imports by 16.9%.

According to the ranking of banks and credit companies in Armenia,  prepared by ArmInfo, in 2022 credit companies and banks of Armenia  provided mortgage loans for 1.086 trillion drams ($2.8 billion),  which is 18.1% more than a year ago.