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WESTERN INVESTMENT EXPANSION
The National Statistics Service reported a sharp decline of investments
in Armenia. Total foreign investments in the Armenian economy in
2012 dropped by 8.6% compared with 2011, reaching 1,587 million. And
foreign investments in the real sector of the Armenian economy total
751.8 million, having decreased by 7.9%.
No one wanted to invest in Armenia, apparently due to the political
situation. However, experts say after April 9 when passions will
calm down, investments will flow to Armenia. This applies to several
branches which are still monopolized or highly limited: air flights,
imports of essential goods and mining. These branches are always in
demand, so investments will be made unlike high-tech which is risky.
Armavia's bankruptcy may lead to appearance of a major foreign capital
in Armenia, the press reports, either American or Italian. Sale of
Yerevan City supermarkets to the French Carrefour may result in the
dominance of a foreign company in the market of essential goods. And
the promised investment of over 400 million in the development of
gold deposits by the British Amulsar company of Armen Sargsyan can
change the situation of investments in the mining sector.
Actually, redistribution of property in Armenia may turn into a process
of transfer of the real economy to the Western capital. Local investors
who lost political levers, as Ashot Yeghiazaryan says, prefer taking
their capital out of the country. Actually, they are providing room
for foreign capital.
If world giants appear in the tiny market of Armenia, it will be hard
for local businessmen. The government, along with liberalization of
economy, should take measures to protect local production. Otherwise,
the Western capital which will repress local oligarchy will be the
next monopolist.
It is noteworthy that the leader of foreign investments in the real
sector of the 2012 is France with 230.4 million USD, having grown 2.3
times as compared with 2011. Average Russian investments in the real
sector of Armenia totaled USD 122.7 million (down by 68.8%). In 2012
Canada invested approximately USD 106.6 million in Armenia, which is
3.4 times more than in 2011. Approximately half of the investments
went to telecommunications.
Russia is taking out its capital from Armenia to be replaced by Western
giants. It has already happened in the banking sector where HSBC and
ACBA-Credit Agricole are leaders in Armenia. Besides, in regard to
foreign debt, Armenia owns more to Western funds, IMF, WB, and EBRD.
It is time for other branches.
Naira Hayrumyan 11:35 02/04/2013 Story from Lragir.am News:
http://www.lragir.am/index.php/eng/0/economy/view/29479
The National Statistics Service reported a sharp decline of investments
in Armenia. Total foreign investments in the Armenian economy in
2012 dropped by 8.6% compared with 2011, reaching 1,587 million. And
foreign investments in the real sector of the Armenian economy total
751.8 million, having decreased by 7.9%.
No one wanted to invest in Armenia, apparently due to the political
situation. However, experts say after April 9 when passions will
calm down, investments will flow to Armenia. This applies to several
branches which are still monopolized or highly limited: air flights,
imports of essential goods and mining. These branches are always in
demand, so investments will be made unlike high-tech which is risky.
Armavia's bankruptcy may lead to appearance of a major foreign capital
in Armenia, the press reports, either American or Italian. Sale of
Yerevan City supermarkets to the French Carrefour may result in the
dominance of a foreign company in the market of essential goods. And
the promised investment of over 400 million in the development of
gold deposits by the British Amulsar company of Armen Sargsyan can
change the situation of investments in the mining sector.
Actually, redistribution of property in Armenia may turn into a process
of transfer of the real economy to the Western capital. Local investors
who lost political levers, as Ashot Yeghiazaryan says, prefer taking
their capital out of the country. Actually, they are providing room
for foreign capital.
If world giants appear in the tiny market of Armenia, it will be hard
for local businessmen. The government, along with liberalization of
economy, should take measures to protect local production. Otherwise,
the Western capital which will repress local oligarchy will be the
next monopolist.
It is noteworthy that the leader of foreign investments in the real
sector of the 2012 is France with 230.4 million USD, having grown 2.3
times as compared with 2011. Average Russian investments in the real
sector of Armenia totaled USD 122.7 million (down by 68.8%). In 2012
Canada invested approximately USD 106.6 million in Armenia, which is
3.4 times more than in 2011. Approximately half of the investments
went to telecommunications.
Russia is taking out its capital from Armenia to be replaced by Western
giants. It has already happened in the banking sector where HSBC and
ACBA-Credit Agricole are leaders in Armenia. Besides, in regard to
foreign debt, Armenia owns more to Western funds, IMF, WB, and EBRD.
It is time for other branches.
Naira Hayrumyan 11:35 02/04/2013 Story from Lragir.am News:
http://www.lragir.am/index.php/eng/0/economy/view/29479