Gagik Makaryan: Armenia needs to diversify its economy by establishing closer contacts with United States and Europe
13.10.2016,
15:30
Armenia needs to diversify its economy by establishing closer contacts with the United States and Europe and encourage also local investors, says Gagik Makaryan, the chairman of the National Union of Employers.
YEREVAN, October 13. /ARKA/. Armenia needs to diversify its economy by establishing closer contacts with the United States and Europe and encourage also local investors, says Gagik Makaryan, the chairman of the National Union of Employers.
"The first problem is that even after Armenia’s accession to the Eurasian Economic Union (EEU), its main trade partner is Russia. As for EEU, there is no economic progress within it with all its member countries having economy and investment problems. This means that Armenia should look for investors outside this space," - Makaryan says.
He believes that the diversification of the Armenian economy now, when the new Armenian government began to fight against corruption, and the new prime minister vowed to cut the shadow economy, can significantly help recover at least part of foreign investment flows.
"About eight years ago, foreign direct investment accounted for 8.7% of Armenia's GDP, in 2014 this figure dropped to 3.7%, in 2016 – to 1.7% This is happening against the background of more successful Georgia and Azerbaijan ", - says Makaryan.
He stressed that Armenia should lure foreign investors by high quality labor force and productivity.
"To achieve this a lot should be done in the field of education. Investors go to where there is high-quality and cheap labor force, and at least in this regard, Armenia should gain an advantage," – he says.
"I propose to encourage local investors not by improving the business environment, but by a government-developed program, which will offer subsidies or temporary tax concessions", - he said. -0-
"The first problem is that even after Armenia’s accession to the Eurasian Economic Union (EEU), its main trade partner is Russia. As for EEU, there is no economic progress within it with all its member countries having economy and investment problems. This means that Armenia should look for investors outside this space," - Makaryan says.
He believes that the diversification of the Armenian economy now, when the new Armenian government began to fight against corruption, and the new prime minister vowed to cut the shadow economy, can significantly help recover at least part of foreign investment flows.
"About eight years ago, foreign direct investment accounted for 8.7% of Armenia's GDP, in 2014 this figure dropped to 3.7%, in 2016 – to 1.7% This is happening against the background of more successful Georgia and Azerbaijan ", - says Makaryan.
He stressed that Armenia should lure foreign investors by high quality labor force and productivity.
"To achieve this a lot should be done in the field of education. Investors go to where there is high-quality and cheap labor force, and at least in this regard, Armenia should gain an advantage," – he says.
"I propose to encourage local investors not by improving the business environment, but by a government-developed program, which will offer subsidies or temporary tax concessions", - he said. -0-
