Minister says projected GDP growth for 2017 is adequate
17.11.2016,
16:44
Armenia’s finance minister Vardan Aramyan described today the 3.2% economic expansion projected by the government for 2017 as ‘adequate’, adding that ‘though our medium term ambitions should be much higher.’
YEREVAN, November 17. /ARKA/. Armenia’s finance minister Vardan Aramyan described today the 3.2% economic expansion projected by the government for 2017 as ‘adequate’, adding that ‘though our medium term ambitions should be much higher.’
Speaking at a parliamentary debate on next year’s budget Vardan Aramyan said the government took into account all the factors, which may have impact on Armenia’s economy next year, including the situation at global markets.
According to the minister, following the global crisis time is needed for recovery, and for this there should be stability that will in turn ensure further economic growth. He stressed that the fiscal policy in 2017 will be restrictive because of the growing public debt, since all a lot of money will be spent on interest payments, preventing implementation of major capital expenditures to strengthen the economy.
"After the big expansionary policy a consolidation is needed. The economic growth will be achieved by reducing the refinancing rate of the Central Bank. In 2017 this will lead to an increase in the demand. The effect will not be immediate – it will take from three months to three years. I think it is a reasonable macroeconomic policy aimed at gradual stabilization of the fiscal sector and preservation of the vector of the monetary policy expansion", - said Aramyan.
The minister noted also that except for Armenia and Kyrgyzstan, all other member states of the Eurasian Economic Union (EEU) will register a zero or negative economic growth in the outgoing year. The Armenian government’s projection of GDP growth for this year is 2.2%. -0-
Speaking at a parliamentary debate on next year’s budget Vardan Aramyan said the government took into account all the factors, which may have impact on Armenia’s economy next year, including the situation at global markets.
According to the minister, following the global crisis time is needed for recovery, and for this there should be stability that will in turn ensure further economic growth. He stressed that the fiscal policy in 2017 will be restrictive because of the growing public debt, since all a lot of money will be spent on interest payments, preventing implementation of major capital expenditures to strengthen the economy.
"After the big expansionary policy a consolidation is needed. The economic growth will be achieved by reducing the refinancing rate of the Central Bank. In 2017 this will lead to an increase in the demand. The effect will not be immediate – it will take from three months to three years. I think it is a reasonable macroeconomic policy aimed at gradual stabilization of the fiscal sector and preservation of the vector of the monetary policy expansion", - said Aramyan.
The minister noted also that except for Armenia and Kyrgyzstan, all other member states of the Eurasian Economic Union (EEU) will register a zero or negative economic growth in the outgoing year. The Armenian government’s projection of GDP growth for this year is 2.2%. -0-
