Economist commends government’s desire to increase share of exports in GDP to 45 percent
03.07.2017,
16:34
Armenian economist Vilen Khachatryan commended today the government's desire to increase the share of exports in the country’s GDP to 40-45%, saying the projected figure is realistic and will help boost domestic production.
YEREVAN, July 3. /ARKA/. Armenian economist Vilen Khachatryan commended today the government's desire to increase the share of exports in the country’s GDP to 40-45%, saying the projected figure is realistic and will help boost domestic production. The government’s plan of actions for 2017-2022, approved by the Cabinet on June 19, calls for the average annual economic growth of 5%. It also calls for increasing the share of exports in Armenia's GDP to 40% (against 16% now), and the level of minimum wage by 25%
"Although this is a fairly high and ambitious figure, this kind of approach is justified, because it is difficult to expect serious economic activity without trying to achieve such indicators, especially that the market in Armenia is small, and this desire can increase the efficiency of local productivity, which in turn will lead to the general well-being of the citizens," he told journalists on Monday.
According to the National Statistical Service (NSS), Armenia’s foreign trade turnover grew 23.1% in January-May 2017, compared with the same period a year before, to $2 286.2 billion. Exports totaled $803.9 million showing a 20.9% year-on-year growth and imports grew 24.4% to $1.482.3 billion. As a result, the negative balance of the trade turnover amounted to $678.4 million.
Khachatryan described the government’s program as quite professional, saying it clearly defines all the socio-economic problems of the country, as well as the mechanisms for their solution and the expected results. He singled out the program’s focus on the introduction of new technologies in the public administration, as well as on the improvement of the investment environment, which is a positive trend.
However, he questioned the government’s ability to secure an average annual economic growth of 5%. In his opinion, taking into account the economic growth trends over the past few years, as well as the current economic situation in the country, it will be very difficult to ensure such an annual indicator.
The 2017 state budget projects a GDP growth of 3.2%. The World Bank’s forecast is 2.7% and that of IMF is 2.9% -0-
"Although this is a fairly high and ambitious figure, this kind of approach is justified, because it is difficult to expect serious economic activity without trying to achieve such indicators, especially that the market in Armenia is small, and this desire can increase the efficiency of local productivity, which in turn will lead to the general well-being of the citizens," he told journalists on Monday.
According to the National Statistical Service (NSS), Armenia’s foreign trade turnover grew 23.1% in January-May 2017, compared with the same period a year before, to $2 286.2 billion. Exports totaled $803.9 million showing a 20.9% year-on-year growth and imports grew 24.4% to $1.482.3 billion. As a result, the negative balance of the trade turnover amounted to $678.4 million.
Khachatryan described the government’s program as quite professional, saying it clearly defines all the socio-economic problems of the country, as well as the mechanisms for their solution and the expected results. He singled out the program’s focus on the introduction of new technologies in the public administration, as well as on the improvement of the investment environment, which is a positive trend.
However, he questioned the government’s ability to secure an average annual economic growth of 5%. In his opinion, taking into account the economic growth trends over the past few years, as well as the current economic situation in the country, it will be very difficult to ensure such an annual indicator.
The 2017 state budget projects a GDP growth of 3.2%. The World Bank’s forecast is 2.7% and that of IMF is 2.9% -0-
