YEREVAN, September 27. /ARKA/. Armenia’s current high economic growth rate may slow down or cease without a concomitant inflow of foreign investments, the head of EV Consulting Manuk Yergnyan told journalists on Wednesday, citing official data, which say that the economic activity index in the first quarter was 6.5%, slowing down to 5.5% in the second quarter. According to the Central Bank, the Armenian economy grew by 6% in the first half of the year.
“This, in fact, is the highest growth rate in recent years, driven by the mining and manufacturing industries, as well as trade and services, while the agriculture sector saw a 2% decline,’ he said.
According to his estimates, overall, only $75-85 million arrived in the first half as foreign investments..
“Investments are a very important indicator in stimulating economic growth, and the growth of the economy that we are seeing today can stop or slow down unless it is accompanied by a corresponding inflow of investments,” Yergnyan said.
He also noted the ongoing decline in construction. According to him, this sector always needs capital investments. Yergnyan highlighted three major challenges facing the Armenian economy. First, it is overcoming poverty through a more fair distribution of growth. Second is creation of new economic opportunities, which means that Armenia should expand its economy, look for new export markets and constantly ensure the inflow of foreign investments. Another important challenge is technological transformation and re-equipment of the economy. -0-
