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ITAR-TASS, Russia
January 17, 2014 Friday 05:42 PM GMT+4
Armenia's integration with CU to raise its GDP by 4% a year additionally - bank
ALMATY January 17
- Armenia's accession to the Customs Union (CU) and the Common
Economic Space (CES) will yield positive effect for the republican
economy: its additional annual growth is expected to reach about four
percent, the press centre of the Eurasian Development Bank (EDB) says,
quoting a survey entitled "Armenia and the Customs Union: Assessment
of the Integration Economic Result." The survey was carried out by the
bank's Integration Study Centre.
"The numerical analysis of the results of Armenia's accession to the
Customs Union showed that the integration process had stimulated
additional annual growth of Armenia's GDP by almost four percent," the
document says.
"It is noteworthy that the trading effect from the decline in Russia's
gas prices by 140 million U.S. dollars over a year is comparable to
the GDP growth by 146 million U.S. dollars. This may enable Armenia to
sign an association agreement with the European Union in the long
term," the document goes on to say.
The study's authors are confident that Armenia's integration with the
CU-CES should be preferable irrespective of what economic development
strategy the republic is going to choose: to expand internal demand or
stick to export-oriented development. If Armenia becomes a
full-fledged member of the Customs Union and the Common Economic
Space, it will be able to find more efficient solutions to urgent
socio-economic problems and will embark on path of sustainable and
balanced economic growth.
Research analysts believe that entry into the common labor markets
will be a key benefit for Armenia from joining the Commonwealth of
Independent States.
"Currently, the republic receives 85 percent of all transfers from
labor migrants working in Russia, which makes up 15 percent of
Armenia's GDP. The accession to the CES agreements will make it
possible to raise the value of transfers by 40 million U.S. dollars a
year," the experts note.
The biggest and most promising infrastructure projects in Armenia that
will involve investors from CES countries include the construction of
a new nuclear power plant and implementation of other energy projects
as well as construction of a railroad to Iran, the North-South
transport route and the resumption of railway traffic with Russia via
Georgia.
It is important that not only Armenia but also other CU-CES countries
will benefit from the aforesaid projects because the creation and
development of railway and bus transport routes via Armenia to South
Asia and the Middle East will link those markets to the Customs Union
states.
Established by Russia and Kazakhstan in January 2006, the Eurasian
Development Bank is an international financial organization. The bank
was created to promote economic growth in its member states, extend
trade and economic ties among them and support integration in Eurasia.
The bank's member states include Armenia, Belarus, Kazakhstan,
Kyrgyzstan, Russia and Tajikistan. The EDB's authorized capital
exceeds 1.5 billion U.S. dollars.
January 17, 2014 Friday 05:42 PM GMT+4
Armenia's integration with CU to raise its GDP by 4% a year additionally - bank
ALMATY January 17
- Armenia's accession to the Customs Union (CU) and the Common
Economic Space (CES) will yield positive effect for the republican
economy: its additional annual growth is expected to reach about four
percent, the press centre of the Eurasian Development Bank (EDB) says,
quoting a survey entitled "Armenia and the Customs Union: Assessment
of the Integration Economic Result." The survey was carried out by the
bank's Integration Study Centre.
"The numerical analysis of the results of Armenia's accession to the
Customs Union showed that the integration process had stimulated
additional annual growth of Armenia's GDP by almost four percent," the
document says.
"It is noteworthy that the trading effect from the decline in Russia's
gas prices by 140 million U.S. dollars over a year is comparable to
the GDP growth by 146 million U.S. dollars. This may enable Armenia to
sign an association agreement with the European Union in the long
term," the document goes on to say.
The study's authors are confident that Armenia's integration with the
CU-CES should be preferable irrespective of what economic development
strategy the republic is going to choose: to expand internal demand or
stick to export-oriented development. If Armenia becomes a
full-fledged member of the Customs Union and the Common Economic
Space, it will be able to find more efficient solutions to urgent
socio-economic problems and will embark on path of sustainable and
balanced economic growth.
Research analysts believe that entry into the common labor markets
will be a key benefit for Armenia from joining the Commonwealth of
Independent States.
"Currently, the republic receives 85 percent of all transfers from
labor migrants working in Russia, which makes up 15 percent of
Armenia's GDP. The accession to the CES agreements will make it
possible to raise the value of transfers by 40 million U.S. dollars a
year," the experts note.
The biggest and most promising infrastructure projects in Armenia that
will involve investors from CES countries include the construction of
a new nuclear power plant and implementation of other energy projects
as well as construction of a railroad to Iran, the North-South
transport route and the resumption of railway traffic with Russia via
Georgia.
It is important that not only Armenia but also other CU-CES countries
will benefit from the aforesaid projects because the creation and
development of railway and bus transport routes via Armenia to South
Asia and the Middle East will link those markets to the Customs Union
states.
Established by Russia and Kazakhstan in January 2006, the Eurasian
Development Bank is an international financial organization. The bank
was created to promote economic growth in its member states, extend
trade and economic ties among them and support integration in Eurasia.
The bank's member states include Armenia, Belarus, Kazakhstan,
Kyrgyzstan, Russia and Tajikistan. The EDB's authorized capital
exceeds 1.5 billion U.S. dollars.