Direct foreign investments in Armenian economy $1.9bln last year

YEREVAN, April 1. /ARKA/. Direct foreign investments in the Armenian economy totaled US $1.9bln last year, reported Robert Harutyunyan, Director General of the Armenian Development Agency (ADA).

“Direct foreign investments had tripled since 2006. Specifically, they totaled $500mln in 2006, and exceed $1bln now,” Harutyunyan said that at the workshop “Commercializing Research” opened in Yerevan yesterday.

He said that 50% of the direct investments were made by Russia. Germany, France and Argentina are implementing interesting investment programs in Armenia as well.

Harutyunyan said that most of the funds were invested in the sectors of traditional interest to investors – telecommunications, mining and food industries, information technologies.

He pointed out that 3,700 companies shared in by foreign capital are currently operating in Armenia, with many of them being successful despite the global crisis.

“This can be regarded as a positive trend because investors disregard global obstacles,” he said.

Harutyunyan said that, with the scope of the Armenian market considered, direct foreign investments are mostly export-oriented, and investors are seeking new markets for their products.

The Armenian Government aims to provide the companies with new markets, and the ADA is rendering possible assistance in this process.

“In this context I should point out the significance of the free trade regime with the others members of the Commonwealth of Independent States (CIS), Armenia’s membership in the World Trade Organization (WTO), and the GSP+ benefits recently granted to Armenia by the European Union. If all the opportunities are considered as a whole, the Armenian producers can be said to have a 1bln-strong market,” Harutyunyan said.

From January 1, 2009, Armenia received the additional preferences offered under the GSP+ incentive arrangement.

The ADA Director General also pointed out that economic progress in Armenia, which may be of interest to prospective investors. Specifically, Armenia registered average annual GDP growth of 8-10 per cent, and last year’s GDP reached $9.8bln. Harutyunyan also said that the increase in the state budget revenues is the result of improved tax administration and business environment. P.T. –0--