Armenian entrepreneurs prefer bank deposits to investment in real economy – economist

YEREVAN, July 18. /ARKA/. Armenian business people prefer bank deposits to investment in the real economy, Artak Manukyan, an economist, told reporters on Monday.

In his words, deposit resources at Armenia’s banks have grown 23% since 2015 to $5 billion.

This is the only segment in the country’s economy that is intensively growing despite the downing interest rates.

Manukyan said that despite the falling profitability, bank deposits seem more attractive to entrepreneurs than investments in other areas.

Explaining this, he said that other segments are not so profitable because of the lack of appropriate financial instruments.

“As a result, deposits remain the only beneficial and reliable instrument for receiving profits, and economic entities find it reasonable not to invest in the real sector of the economy,” the economist said.

Manukyan pointed out tourism as promising segment for investments. –0—

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