Monday, March 13 2023 13:16
Naira Badalian

Armenia`s former premier records absolute decline in population`s  living standards for 2018-2022

Armenia`s former premier records absolute decline in population`s  living standards for 2018-2022

ArmInfo. Former Prime Minister of Armenia, economist Hrant Bagratyan speaks about the absolute impoverishment of the population of the Republic of Armenia over the past 5 years.

According to Bagratyan, in 2018-2022, 13234 billion drams (or about  34 billion US dollars) were spent from various sources to ensure GDP  growth in the amount of 2298 billion drams. "This means that 5.8  drams of financial resources were spent on the growth of 1 dram of  GDP," the economist said on his Facebook page. The former premier  analyzes how this increase of 2298 billion drams was distributed  among different groups of the population. So, according to him, in  general, in 2018-2022, the consumer price index amounted to 23.9%:  the average monthly nominal wage in the Republic of Armenia increased  by 32.5% (from 177,817 drams in 2017 to 235,576 drams in 2022).

"It may seem that the life of salaried workers has improved by 8.5%.  But let's not rush to conclusions.  During the first 5 years  (2003-2007), the average salary increased 2.7-fold (from 27,324 drams  in 2002 to 74,227 drams, and inflation was 24%). As a result, the  life of salaried workers improved 2.45-fold, or 145%. 

In the second five-year period (2008-2012), the average monthly  nominal wage increased by 52.5% (from 74,227 drams in 2007 to 113,163  drams in 2012), while prices increased by 31.9%. And now, with the  same methodological approach, it turns out that in 2008-2012,  salaried workers began to live better by 20.6%.

In the third five-year period (2013-2017), the average monthly  nominal wage increased by 57.1% (from 113,163 drams to 177,817 drams  in 2012), while prices increased by only 12%. So, it turns out that  in 2013-2017, the life of salaried workers improved by 45.1%, and in  2018-2022, the lowest rates of improvement in the standard of living  of salaried workers were recorded," the economist wrote.

Referring to the statistics on pensioners (465 thousand people),  Bagratyan notes that the real size of pensions recorded a decline in  2018-2022 - pensions increased by 15% (the average state pension  increased from 40,634 drams in 2017 to 46,734 drams in 2022), but  prices increased by 23.9% and therefore the real incomes of  pensioners decreased by (-)8.9 %. In the first five-year plan, the  real incomes of pensioners increased by 97.7% (the average pension  increased from 5748 drams in 2002 to 12746 drams in 2007, and  inflation was 24%), in the second five-year plan - by 101% (the  average pension increased from 12746 drams in 2007 to 29696 drams in  2012, and inflation was 31.9%). In the third five-year plan  (2013-2017), the real incomes of pensioners increased by 24.8% (the  average pension increased from 29,696 drams in 2012 to 40,634 drams  in 2017, while inflation was 12%).

At the same time, returning to the growth of real wages by 8.5% for  2018-2022, the former premier speaks of "suspicious things." "For  example, wage increases also indicate remuneration of the leadership  of the state apparatus, but it would be right to exclude them, since  these premiums relate to the administrative apparatus (the offices of  the prime minister, the National Assembly, ministries and  departments, governors, etc.). If do not exclude this line, then we  are dealing with the "effect of the average temperature in the  hospital." How many bonuses were paid in 2018-2022? Our "democratic"  government has not answered this question, "he said, emphasizing  that, if we subtract the declared 40 billion (1.6%) from the wage  fund of salaried workers (about 2.5 trillion drams per year), then  from the 8.5% mentioned above, 6.9% will remain.

As a result of all this, Bagratyan noted, the poverty rate in 2021  was 26.5% (data for 2022 have not yet been published). Meanwhile, in  2017, the figure was 25.7%. The number of the extremely poor also  increased in 2021 - up to 1.5% (the increase in extreme poverty in  the Republic of Armenia in 2021 compared to 2019 was 0.1% and 0.8% -  from 2020). The share of food in consumer spending increased from  40.4% in 2018 to 47.1% in 2021. "Absolute impoverishment. At the same  time, the share of wages of employees in GDP decreased to 31.9% (in  2003 - 40.2%). And it follows from this that in 2018-2022 the  standard of living of the RA population recorded not only a relative  but also an absolute decline," the former prime minister wrote. 

POST A COMMENT
Input digits     


News
AraratBank underwrites FINCA UCO bondsAraratBank underwrites FINCA UCO bonds
Team NGN`s 25Gbps network is already available to 150,000 households  in ArmeniaTeam NGN`s 25Gbps network is already available to 150,000 households  in Armenia
Pashinyan: Armenia considers it important to form collective food  security system in EAEUPashinyan: Armenia considers it important to form collective food  security system in EAEU
Trade, services and construction continue to be main drivers of  double-digit growth in economic activity in ArmeniaTrade, services and construction continue to be main drivers of  double-digit growth in economic activity in Armenia
Armenian investment crowdfunding platform ARFI and ANIF to be  presented at Orion 2023 Summit in New YorkArmenian investment crowdfunding platform ARFI and ANIF to be  presented at Orion 2023 Summit in New York
Transavia Airlines to start Marseille-Yerevan-Marseille operating  flightsTransavia Airlines to start Marseille-Yerevan-Marseille operating  flights
Georgia refutes information about launch of shipment to NovorossiyskGeorgia refutes information about launch of shipment to Novorossiysk
Batumi-Novorossiysk ferry service put into operation Batumi-Novorossiysk ferry service put into operation 
Plant producing aluminum radiators to be put into operation in  ArmeniaPlant producing aluminum radiators to be put into operation in  Armenia
Vahan Kerobyan on Vahan Kerobyan on "impressive" indicators of FDI in Armenian economy
Yerevan brandy company could stop exports to RussiaYerevan brandy company could stop exports to Russia
Kaps reservoir construction project resumed in Armenia Kaps reservoir construction project resumed in Armenia 
CMTPL E-polices sales stalled pending more visible discounts as part  of tariff liberalization CMTPL E-polices sales stalled pending more visible discounts as part  of tariff liberalization 
ANIF to invest EUR 3.9mln in Universal Closures company ANIF to invest EUR 3.9mln in Universal Closures company 
Germany to assist Armenia in strengthening local government systemGermany to assist Armenia in strengthening local government system
Fix Price announces entry into Armenia`s marketFix Price announces entry into Armenia`s market
Presentation of ROBBO company held in Armenia Presentation of ROBBO company held in Armenia 
EBRD improves its GDP growth forecast for Armenia EBRD improves its GDP growth forecast for Armenia 
FLYONE ARMENIA started operating flights on the route Yerevan-Larnaca-YerevanFLYONE ARMENIA started operating flights on the route Yerevan-Larnaca-Yerevan
Armenian Diaspora of United States is ready to invest in  technological development of ArmeniaArmenian Diaspora of United States is ready to invest in  technological development of Armenia
CBA Forecast: Inflation in Armenia to reach target level of 4% from  H2 2023CBA Forecast: Inflation in Armenia to reach target level of 4% from  H2 2023
Foreigners` transactions on buying and selling property  reduced in  ArmeniaForeigners` transactions on buying and selling property  reduced in  Armenia
In Yerevan, real estate market activity is declining, but prices  continue to riseIn Yerevan, real estate market activity is declining, but prices  continue to rise
RA citizens` perception of EU has changed dramatically. Pashinyan The  reputation of the European Union has significantly improved after the  Union decided to send an observation mission to Armenia RA citizens` perception of EU has changed dramatically. Pashinyan The  reputation of the European Union has significantly improved after the  Union decided to send an observation mission to Armenia 
Bright future for solar energy in Armenia - Expert on measures to  ensure sustainable development and true independence of  energy  sectorBright future for solar energy in Armenia - Expert on measures to  ensure sustainable development and true independence of  energy  sector
EDB discusses and implements number of energy projects in Armenia -  Head of BankEDB discusses and implements number of energy projects in Armenia -  Head of Bank
EDB is ready to support Amulsar mine development project - PodguzovEDB is ready to support Amulsar mine development project - Podguzov
Armenian-Czech business forum held in Prague Armenian-Czech business forum held in Prague 
Armenia`s Finance Ministry delegation participates in experience  exchange events  organized by ICAEWArmenia`s Finance Ministry delegation participates in experience  exchange events  organized by ICAEW
EAEU expects to significantly increase volume of trade in mid term by  signing of FTZ establishment agreement with IranEAEU expects to significantly increase volume of trade in mid term by  signing of FTZ establishment agreement with Iran
Union of Banks of Armenia presented awards to employees of ArmInfo  for their professional activities in covering financial and banking  sectorUnion of Banks of Armenia presented awards to employees of ArmInfo  for their professional activities in covering financial and banking  sector
CBA Deputy Governor singles out three key factors ensuring growth of  Armenia`s economy last yearCBA Deputy Governor singles out three key factors ensuring growth of  Armenia`s economy last year
Armenia`s state treasury revenues from leasing of state property  increased by 67.7% in 2022Armenia`s state treasury revenues from leasing of state property  increased by 67.7% in 2022
WB to issue 92.3mln Euro loan to Armenia for supporting country`s  budgetWB to issue 92.3mln Euro loan to Armenia for supporting country`s  budget
Iranian company to construct modern checkpoint in Armenia`s MeghriIranian company to construct modern checkpoint in Armenia`s Meghri
Environment Ministry, KfW sign agreement for implementation of EUR 26  million program Environment Ministry, KfW sign agreement for implementation of EUR 26  million program 
43 young people graduated from joint training programme organized by GITC and HSBC Armenia43 young people graduated from joint training programme organized by GITC and HSBC Armenia
Armenian, Lebanese ministers of economy discuss development of  economic ties  Armenian, Lebanese ministers of economy discuss development of  economic ties  
Minister of Economy: Relocation impact on Armenia`s economic growth  is estimated at one thirdMinister of Economy: Relocation impact on Armenia`s economic growth  is estimated at one third
AMD 3,389,788 for the project to reveal the professional potential of war participants. The next beneficiary of AMD 3,389,788 for the project to reveal the professional potential of war participants. The next beneficiary of "The Power of One Dram" is the "Path of Life" NGO
After 12-year break, airBaltic resumes flights on Riga-Yerevan-Riga  routeAfter 12-year break, airBaltic resumes flights on Riga-Yerevan-Riga  route
PSRC announced results of tender for license to launch 5G networks in  ArmeniaPSRC announced results of tender for license to launch 5G networks in  Armenia
FlyOne Armenia plane makes emergency landing in IranFlyOne Armenia plane makes emergency landing in Iran
Specific debt burden per capita in Armenia continues to grow rapidly,  approaching $4.000Specific debt burden per capita in Armenia continues to grow rapidly,  approaching $4.000
Armenian interagency group to deal with multimodal high-speed route  and operator activities in Chabahar PortArmenian interagency group to deal with multimodal high-speed route  and operator activities in Chabahar Port
$250mln investments in Amulsar nothing but a bubble - Environmental  Front$250mln investments in Amulsar nothing but a bubble - Environmental  Front
Armenia`s economic activity continues to grow at double-digit paceArmenia`s economic activity continues to grow at double-digit pace
Rocket Line digital credit with longer termRocket Line digital credit with longer term
Ardshinbank warns about the facts of fraudArdshinbank warns about the facts of fraud
Inflation began to decline more noticeably in ArmeniaInflation began to decline more noticeably in Armenia
Feeling of insecurity among majority of Armenia`s population may  affect country`s economic development- EconomistFeeling of insecurity among majority of Armenia`s population may  affect country`s economic development- Economist
GIZ and KfW to open offices in YerevanGIZ and KfW to open offices in Yerevan
RA Premier: New checkpoint to be built in Meghri with EU assistance RA Premier: New checkpoint to be built in Meghri with EU assistance 
Gnel Sanosyan: For many years, tariffs for connection to Electric  Networks of Armenia were far from realisticGnel Sanosyan: For many years, tariffs for connection to Electric  Networks of Armenia were far from realistic
Armenia`s gross international reserves decreased by 9.4% in Q1 2023Armenia`s gross international reserves decreased by 9.4% in Q1 2023
Armenia`s budget revenues 20% up in Jan-Apr, 2023Armenia`s budget revenues 20% up in Jan-Apr, 2023
CBA: Monetary policy scenario envisages rapid decline in inflation  below target of 4% in near futureCBA: Monetary policy scenario envisages rapid decline in inflation  below target of 4% in near future
Martin Galstyan: Even in negative scenario, Armenia`s banking system  is able to absorb possible losses, while maintaining continuity of  financial intermediationMartin Galstyan: Even in negative scenario, Armenia`s banking system  is able to absorb possible losses, while maintaining continuity of  financial intermediation
CBA Head: Final victory has not yet been won in fight against  inflationCBA Head: Final victory has not yet been won in fight against  inflation
Pashinyan, Likhachev discuss construction of new nuclear power unit  in ArmeniaPashinyan, Likhachev discuss construction of new nuclear power unit  in Armenia
Read more


Exchange rates
26.05.2023
RUB4.830.00
USD386.520.12
EUR415.240.90
GBP478.400.81
CAD284.060.03
JPY27.65-0.03
CNY54.62-0.17
CHF427.951.46