Armenian government to adjust its programs because of external shocks
09.12.2015,
17:38
Speaking in parliament today Armenian prime minister Hovik Abrahamyan said the government will adjust its development programs because of external economic shocks, which he said have created a significant tension for economic stability.
YEREVAN, December 9. /ARKA/. Speaking in parliament today Armenian prime minister Hovik Abrahamyan said the government will adjust its development programs because of external economic shocks, which he said have created a significant tension for economic stability.
He said economic downturn in Armenia's partner countries has affected consumers' purchasing power in major export markets, making export of Armenian products more difficult and leaving negative impact on local companies' revenues.
"In late 2014, our economy fell under the influence of new regional developments. The current external challenges, in contrast to 2008-2009 economic crisis, are not only economic in nature, but also political and geopolitical. It means that it is very difficult to predict them," said Abrahamyan.
In his words, this is why international organizations believe that the world and especially the region where Armenia is are now in a more difficult situation than in the years of the previous crisis.
According to the prime minister, in such circumstances, the government has no alternative but to make adjustments to its economic reform program.
"We will review our plan of actions for perspective economic development until 2025, which was approved in 2014 March. In 2016 we are going to start this process with the active involvement of the wider community," said Abrahamyan.
According to him, the government will work to encourage long-term growth, instead of focusing on short-term results, and will put the main emphasis on taxation of consumption in order to increase competitiveness and investment attractiveness of the country.
"The reforms will have to bring about an increase in budget revenues due to improved tax collection and facilitation of conditions for taxpayers,' he said.
He said the reforms will be implemented within the next 3-5 years to ensure the stability of tax system and a smooth transition.
According to the National Statistical Service, Armenian economy in quarter 3, 2015 grew by 3.3%. The GDP in terms of money amounted to 1.516.5 trillion drams or about $3.16 billion. -0-
He said economic downturn in Armenia's partner countries has affected consumers' purchasing power in major export markets, making export of Armenian products more difficult and leaving negative impact on local companies' revenues.
"In late 2014, our economy fell under the influence of new regional developments. The current external challenges, in contrast to 2008-2009 economic crisis, are not only economic in nature, but also political and geopolitical. It means that it is very difficult to predict them," said Abrahamyan.
In his words, this is why international organizations believe that the world and especially the region where Armenia is are now in a more difficult situation than in the years of the previous crisis.
According to the prime minister, in such circumstances, the government has no alternative but to make adjustments to its economic reform program.
"We will review our plan of actions for perspective economic development until 2025, which was approved in 2014 March. In 2016 we are going to start this process with the active involvement of the wider community," said Abrahamyan.
According to him, the government will work to encourage long-term growth, instead of focusing on short-term results, and will put the main emphasis on taxation of consumption in order to increase competitiveness and investment attractiveness of the country.
"The reforms will have to bring about an increase in budget revenues due to improved tax collection and facilitation of conditions for taxpayers,' he said.
He said the reforms will be implemented within the next 3-5 years to ensure the stability of tax system and a smooth transition.
According to the National Statistical Service, Armenian economy in quarter 3, 2015 grew by 3.3%. The GDP in terms of money amounted to 1.516.5 trillion drams or about $3.16 billion. -0-
