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Armenia's government expects next year's GDP to expand by 5.2%
YEREVAN, September 28. / ARKA /. Armenia's government expects next
year's GDP to grow by 5.2%, Finance Minister David Sargsyan said
today, adding that this figure is projected by the draft budget for
2014.
"The nominal GDP is expected to reach 4.723,700 trillion drams," he
said Saturday during an extraordinary session of the government,
convened to discuss the draft budget.
In comments on these numbers Prime Minister Tigran Sargsyan said this
means the government will have to work very hard next year because of
a string of factors that may have a negative impact on Armenia's
economy.
According to him, the first factor is the anticipated economic
slowdown in developed countries. `In particular, the IMF has revised
downward its outlook for Russia's GDP,' he said.
On September 24 the International Monetary Fund slashed its growth
forecast for Russia for 2013 and 2014 for the third time this year,
urging the government to pursue structural reforms and improve the
investment climate in order to boost growth. The IMF said it saw the
economy growing at 1.5% this year and 3% in 2014, held back by weak
investment and low demand for its exports. In June, the Fund cut its
outlook for 2013 to 2.5%, after an earlier cut in April to 3.4% from
3.7%. In April, the Fund saw Russia's economy growth in 2014 at 3.8%.
The IMF outlook for this year is even more pessimistic than that of
the Russian government, which sees 2013 growth at 1.8%, down from the
3.6% forecast at the start of the year.
Another factor, according to Sarkisian, is the downward trend in the
amount of private investment, which makes the government improve the
business climate and distribute the tax burden evenly.
The total amount of foreign investment in the real sector of the
economy in the first six months in 2013 slashed by 35 percent to $293
million from the year before.
"The peculiarity of the next year's budget is that we do not increase
the tax burden. The ratio of taxes to GDP each year increased by 0.3,
0.4 pp. We decided not to increase this ratio this year to avoid
excessive pressure on the business,' he said.
"It is also clear that a membership in the Customs Union will create a
new environment for businesses and we must do everything possible to
make this transition gradual," he said. -0-
- See more at: http://arka.am/en/news/economy/armenia_s_government_expects_next_year_s_gdp_to_ex pand_by_5_2/#sthash.f79HTwS5.dpuf
YEREVAN, September 28. / ARKA /. Armenia's government expects next
year's GDP to grow by 5.2%, Finance Minister David Sargsyan said
today, adding that this figure is projected by the draft budget for
2014.
"The nominal GDP is expected to reach 4.723,700 trillion drams," he
said Saturday during an extraordinary session of the government,
convened to discuss the draft budget.
In comments on these numbers Prime Minister Tigran Sargsyan said this
means the government will have to work very hard next year because of
a string of factors that may have a negative impact on Armenia's
economy.
According to him, the first factor is the anticipated economic
slowdown in developed countries. `In particular, the IMF has revised
downward its outlook for Russia's GDP,' he said.
On September 24 the International Monetary Fund slashed its growth
forecast for Russia for 2013 and 2014 for the third time this year,
urging the government to pursue structural reforms and improve the
investment climate in order to boost growth. The IMF said it saw the
economy growing at 1.5% this year and 3% in 2014, held back by weak
investment and low demand for its exports. In June, the Fund cut its
outlook for 2013 to 2.5%, after an earlier cut in April to 3.4% from
3.7%. In April, the Fund saw Russia's economy growth in 2014 at 3.8%.
The IMF outlook for this year is even more pessimistic than that of
the Russian government, which sees 2013 growth at 1.8%, down from the
3.6% forecast at the start of the year.
Another factor, according to Sarkisian, is the downward trend in the
amount of private investment, which makes the government improve the
business climate and distribute the tax burden evenly.
The total amount of foreign investment in the real sector of the
economy in the first six months in 2013 slashed by 35 percent to $293
million from the year before.
"The peculiarity of the next year's budget is that we do not increase
the tax burden. The ratio of taxes to GDP each year increased by 0.3,
0.4 pp. We decided not to increase this ratio this year to avoid
excessive pressure on the business,' he said.
"It is also clear that a membership in the Customs Union will create a
new environment for businesses and we must do everything possible to
make this transition gradual," he said. -0-
- See more at: http://arka.am/en/news/economy/armenia_s_government_expects_next_year_s_gdp_to_ex pand_by_5_2/#sthash.f79HTwS5.dpuf