Minister of Economy: Total agricultural expenditures totaled AMD 47 billion in 2023

ArmInfo. The agricultural budget of Armenia in 2023 amounted to 37 billion drams, but expenses reached 47 billion drams. Minister of Economy of Armenia Vahan Kerobyan stated, presenting the results of the 2023 economic year to the Prime Minister of Armenia Nikol Pashinyan.

In this regard, he noted that compared to 2018, the budget of the agro-industrial complex of Armenia recorded a 7-fold increase.

Speaking about the general situation in the field, Kerobyan informed the Prime Minister that the growth in gross agricultural production for 9 months amounted to 1.7%.

As part of the state leasing assistance program, 664 units of agricultural machinery were purchased. The active portfolio under this program is estimated at 15 billion drams. 435 unit of equipment were purchased under the leasing program of the agri-food sector with a total amount of AMD 5 billion.

As part of the agricultural insurance program, farmers were compensated 2.6 billion drams. During the current year, according to the minister, 1,967 hectares of intensive gardens were established, while the government's y-o-y target was 1,000 hectares.

Kerobyan said that this year a new program in the field of greenhouse farming was approved. According to him, at this stage preparations for the conclusion of investment agreements that will cover an area of 5 hectares are underway.

The number of beneficiaries of the state program to stimulate the production of winter wheat was 22,483.  Thus, the area sown with winter wheat under this program reached 15 thousand hectares.  He also said that during the specified period, 86 thousand tons of fruits and vegetables, 160 thousand tons of grapes were harvested and 568,622 head of cattle are numbered.

Touching upon the main economic indicators, the minister said that this year economic growth is projected to range between 8.3-8.5%. At the same time, the ratio of trade turnover to GDP will be 110%, which is a record figure, and exports to GDP - 54.5%, against the government target of 60%. In terms of per capita GDP, as Kerobyan noted, Armenia has improved its performance. "In 2017, we ranked 122nd, in 2020 - 112th, and in 2023, according to the IMF forecast, we will rank 86th," he said.

According to the minister, the volume of investments increased by 17.5% compared to the previous year.  Over the year, 44 thousand new jobs were opened, the poverty level dropped to 24.8% from 26.5%, and in the second quarter the unemployment rate was 11.7%.

In particular, it was noted that in 2023 the government approved the following investment programs: the construction project of the Aragats ski complex, the investment volume of which is estimated at $200 million, the WTC (World Trade Center) project in the amount of $212 million, the Golf club and academy establishment program in the amount of $172 million. According to these programs, it is planned to open11 thousand 150 new jobs. Kerobyan also touched upon the project for the construction of the Dry Port industrial park, which is estimated at $350 million.

At the same time, he said that according to the government program for 2021-2026 it is planned to implement 4 main activities for the development of small and medium-sized businesses. The latter, he said, will be aimed at stimulating connections between science and SMEs, education and SMEs, establishing dialogue between the state and the private sector, and increasing business access to finance.  The IMF has improved its forecast for Armenia's GDP growth for 2023 from the previous 5.5% to an updated 7%, with a slowdown to 5% in 2024 and to 4.5% in 2025. At the same time, the IMF forecasts per capita GDP growth in Armenia in 2023 to $8,029 (from actual $6,569 in 2022), with a further y-o-y increase to $8,352 in 2024 and $8,967 in 2025.

The Central Bank of Armenia also improved the forecasted GDP growth for 2023 from the previous 7.2% to 8.3%.

The World Bank (WB) expects 4.4% economic growth in Armenia in 2023, with the pace accelerating to 4.8% in 2024. The EBRD forecasts Armenia's GDP growth by 6.5% for 2023, with a slowdown to 4.5% in 2024.

The draft RA budget for 2024 envisages 7% economic growth (similar to the rate envisaged in the RA budget for 2023), and the increase in added value is expected to be achieved in industry - by 4.7%, in agriculture - by 3 .5%, in construction - by 8.9%, and in the service sector - by 7.9%, and tax collection will increase by 7.3%.