Armenia expects economic growth

At a joint meeting of the standing committees of parliament dedicated to discussing the draft law on the state budget for 2024 on October 31, Armenian Minister of Finance Vahe Hovhannisyan announced that the growth potential of the Armenian economy is currently estimated at 5.5 percent. 

Artur Khachatryan, the MP from the opposition bloc "Armenia," noted that most of the factors contributing to economic growth in the republic are external. "If we try to filter out internal and external factors influencing economic growth, if we average external economic conditions, then what was our annual economic growth over the past five years?" the parliamentarian asked the head of the financial department.

According to Minister Hovhannisyan, the economic potential of Armenia is 5.5%. At the moment, the economic growth potential is estimated at 5.5%. "The capital investments we make depend on this potential. The magnitude of this potential depends on investment, the diversification of our economy, and the reforms we implement," he said.

Armenian Minister of Economy: "There are no artificial barriers to the export of Armenian products to Russia"

Armenian Minister of Economy Vahan Kerobyan confirmed that there are no artificial barriers to the export of Armenian products to Russia. 

"Commercial transactions in various fields are carried out normally. And I must say that this problem, which occurred for several days [delay of a shipment of Armenian cognac on the Georgian-Russian border], has now been eliminated. Some local companies export their products via ferry service [Russian port of Kavkaz - Georgian port of Poti], everything is in order there too," the head of the department assured.

Kerobyan noted that trade relations with Russia are extremely important for Armenia; the government of the republic continues to develop these relations while at the same time making significant efforts to diversify supply markets. According to him, soon, for the first time in history, Armenia's foreign trade turnover may exceed its GDP.

Chairman of the Central Bank: "Displaced Residents of Karabakh Need to be Brought into Armenian Labor Market"

At a press conference in Yerevan on October 31, Martin Galstyan, the Chairman of the Central Bank of Armenia, stated that to maintain balance in the economy, displaced residents of Karabakh need to be brought into the Armenian labor market as soon as possible. 

"The government support provided to the Karabakh Armenians will contribute to the expansion of short-term demand in the Armenian economy. However, to ensure long-term socio-economic prospects, it is necessary to quickly find employment for arriving compatriots," the head of the Bank noted.

"If, along with an increase in short-term demand, we cannot create conditions for Karabakh residents to integrate and create material wealth, then it will turn out that the demand for goods is growing, but there is no opportunity for GDP growth. This will create risks of inflation," Galstyan warned.

Metallurgical enterprise in the Yeraskh will be moved to another location

On October 31, Vahan Kerobyan informed that the metallurgical enterprise under construction in Yeraskh will be moved to another location, but it will be located not far from the previous one. 

"The process of relocating the industrial facility has been ongoing over the past few weeks," the head of the department noted. "We are dealing with private investment. Construction is carried out with private funds, and investors themselves determine their next steps. We, taking into account the geographical location and regional environment, are trying to be as useful as possible for them," the minister said in response to the question of whether the relocation of the plant means a concession to Azerbaijan.

The head of the Ministry of Economy said that the unstable situation at the border continues to be an obstacle to investment and economic projects in Armenia. "That is why the country’s government insists on the need to promote the peace agenda in the region; the establishment of peace will increase the investment attractiveness of Armenia," Kerobyan noted. "We must strive to ensure that there is long-term peace in the region and no one shoots at anyone," he added.