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CUSTOMS PROSPECTS OF THE ARMENIAN ECONOMY
Vestnik Kavkaza, Russia
Sept 13 2013
13 September 2013 - 9:14am
David Stepanyan, Yerevan. Exclusively to Vestnik Kavkaza
In the context of recent changes in the foreign political course of
Armenia, which are characterized by changing the economic vector of
development, the authorities are involved in their favorite occupation
- calculating the growth rate of the Armenian economy.
The head of the State Committee on Security of Economic Competition,
Artak Shaboyan, promised the government that Armenia's competitiveness
has improved. To confirm his words, he presented a report by the
World Economic Forum on Global Competitive Capacity 2013-2014,
according to which Armenia took 79th place among 148 countries -
it improved its position by three places.
The effectiveness of Armenia's anti-monopoly policy rose 19 places,
putting it ahead of Georgia, Ukraine and Azerbaijan. In the influence
of dominating subjects on the Armenian market, it surpasses not only
several CIS countries, but also Eastern European countries (Hungary,
Slovenia, Slovakia). However, Premier Tigran Sarkisyan reminded that
in customs reforms Armenia takes one of the lowest positions in the
ratings of the World Economic Forum. According to him, in quality
of management schools the country takes 120th place in the world;
the capacity of holding talents - 121st place; export share in GDP -
130th place in the world.
In fact, the Armenian economy is absent in the top-100 of the world
ratings, it's place is between Mauritius and Equatorial Guinea. In the
2000s the Armenian economy, which is concentrated on production of
non-ferrous metals and food products, managed to gain double-digit
indices of economic growth. However, after the global crisis of
2008-2009 reduced GDP by 14%, economists had to analyze the reasons
for reduction of investment inflows into the republic. The reason was
simple - the corruption level in Armenia is one of the highest in the
world, which doesn't encourage attracting foreign capital. As a result,
about 13% of the GDP of the republic is money transfers from abroad;
this led to the GDP crash during the crisis.
In January-July 2013 the overall volume of foreign investments in
the real sector of the economy fell by 34.7%, reaching $293 million.
Strangely enough, the investment leader in Armenia is Argentina -
$76.1million, then Russia - $38.4 million, Canada - $36.5 million,
Cyprus - $37.7 million, and France - $28.9 million. In general the
share of direct investments of the Customs Union states in Armenia
is $2.1 billion, which is 40% of all foreign investments. The main
share of these investments comes from Russia and is directed at
transportation of gas, railway transport, non-ferrous metallurgy,
the banking sector, insurance, TV-communication. The trade turnover of
Armenia with the Customs Union states in January-July 2013 was $742.3
million, while the full volume of trade turnover was $3.2 billion.
According to predictions of economic experts, the volume of foreign
investment in the real sector of economy will continue falling till
at least the end of 2013.
According to the head of the Center of Integration Studies of the
Eurasian Bank, Yevgeny Vinokurov, joining the Customs Union will help
Armenia to attract major target investments directed at the spheres
of transport and energy.
http://vestnikkavkaza.net/analysis/economy/45047.html
From: Baghdasarian
Vestnik Kavkaza, Russia
Sept 13 2013
13 September 2013 - 9:14am
David Stepanyan, Yerevan. Exclusively to Vestnik Kavkaza
In the context of recent changes in the foreign political course of
Armenia, which are characterized by changing the economic vector of
development, the authorities are involved in their favorite occupation
- calculating the growth rate of the Armenian economy.
The head of the State Committee on Security of Economic Competition,
Artak Shaboyan, promised the government that Armenia's competitiveness
has improved. To confirm his words, he presented a report by the
World Economic Forum on Global Competitive Capacity 2013-2014,
according to which Armenia took 79th place among 148 countries -
it improved its position by three places.
The effectiveness of Armenia's anti-monopoly policy rose 19 places,
putting it ahead of Georgia, Ukraine and Azerbaijan. In the influence
of dominating subjects on the Armenian market, it surpasses not only
several CIS countries, but also Eastern European countries (Hungary,
Slovenia, Slovakia). However, Premier Tigran Sarkisyan reminded that
in customs reforms Armenia takes one of the lowest positions in the
ratings of the World Economic Forum. According to him, in quality
of management schools the country takes 120th place in the world;
the capacity of holding talents - 121st place; export share in GDP -
130th place in the world.
In fact, the Armenian economy is absent in the top-100 of the world
ratings, it's place is between Mauritius and Equatorial Guinea. In the
2000s the Armenian economy, which is concentrated on production of
non-ferrous metals and food products, managed to gain double-digit
indices of economic growth. However, after the global crisis of
2008-2009 reduced GDP by 14%, economists had to analyze the reasons
for reduction of investment inflows into the republic. The reason was
simple - the corruption level in Armenia is one of the highest in the
world, which doesn't encourage attracting foreign capital. As a result,
about 13% of the GDP of the republic is money transfers from abroad;
this led to the GDP crash during the crisis.
In January-July 2013 the overall volume of foreign investments in
the real sector of the economy fell by 34.7%, reaching $293 million.
Strangely enough, the investment leader in Armenia is Argentina -
$76.1million, then Russia - $38.4 million, Canada - $36.5 million,
Cyprus - $37.7 million, and France - $28.9 million. In general the
share of direct investments of the Customs Union states in Armenia
is $2.1 billion, which is 40% of all foreign investments. The main
share of these investments comes from Russia and is directed at
transportation of gas, railway transport, non-ferrous metallurgy,
the banking sector, insurance, TV-communication. The trade turnover of
Armenia with the Customs Union states in January-July 2013 was $742.3
million, while the full volume of trade turnover was $3.2 billion.
According to predictions of economic experts, the volume of foreign
investment in the real sector of economy will continue falling till
at least the end of 2013.
According to the head of the Center of Integration Studies of the
Eurasian Bank, Yevgeny Vinokurov, joining the Customs Union will help
Armenia to attract major target investments directed at the spheres
of transport and energy.
http://vestnikkavkaza.net/analysis/economy/45047.html
From: Baghdasarian