Acting economy minister expects 10% growth for 2021
YEREVAN, August 3. /ARKA/. Armenia’s Acting Economy Minister Vahan Kerobyan spoke about the new government’s economic policy designed for the next 5 years during a meeting with members of the Mantashov Union of Entrepreneurs, the press service of the Ministry of Economy reported.
It quoted Kerobyan as saying that the economic indicators recorded in the first half of the year were encouraging exceeding forecasts. In particular, in the first half of 2021, the economic activity increased by 5% compared to the same period last year.
According to him, if this growth rate is maintained, the annual growth of economic activity is very likely to amount to 10%.
Kerobyan noted that the government's program provides for a fourfold increase in funding for science and the opening of 500 preschool institutions and 300 schools.
Kerobyan told the business community that the government will invest a substantial portion of the assistance promised by the European Union in infrastructure development. More precisely, the government plans to build 2,600 km of roads, 15 water reservoirs, and 3 industrial parks in Gyumri, Ararat and Kapan. He said the government will release 500 billion drams as co-financing for the development of companies’ infrastructure.
Besides, the government will release 50 billion drams for the tourism industry to help it bring its services in line with high standards.
Kerobyan also spoke about five target areas that are promising for Armenia. These are solar technologies, chemical and light industries, heavy metallurgy, and financial infrastructure.
He stressed that the development of each sector of the economy should fit into the framework of a stable and green economy.
EU Commissioner for Neighborhood and Enlargement Oliver Várhelyi said in Yerevan in early June that the European Union will provide 1.6 billion euro worth grants to Armenia for implementation of five flagship initiatives.
“Our plan includes transport connectivity, resilience and recovery of the southern provinces, energy efficiency and renewable energy, digital transformation and support for SMEs. We allocate 1.6 billion euros for these flagship initiatives, and altogether we are able to mobilize 2.6 billion euros for Armenia under this plan,’ he said.
According to official statistics, Armenia’s economic activity in the first half of 2021 grew by 5% compared to the same period in 2020. At the same time, in June, compared to June 2020, the economic activity increased by 8%, and compared to May 2021 - by 12%.
Prime Minister Nikol Pashinyan said in early June that the economic growth projection for 2021 had been revised upward- from the previously forecast 3.2% to 6 %.
The Central Bank had also revise upward its growth forecast to 4.6%. The World Bank forecasts for 3.4% growth for 2021, 4.3% for 2022 and 5.3% for 2023. The IMF expects 1% growth in 2021. According to S&P Global Ratings, Armenia's real GDP growth will be 2.5% in 2021 and 4.5% in 2022-2023. -0-.
