3% growth not developing- Armenian economist

The Statistical Service of Armenia reported the ex-chairman of the Central Bank of Armenia (CBA) Bagrat Asatryan’s statement at a discussion on the macroeconomic indicator.

According to Mr. Asatryan the country will not progress unless the problems are resolved.

He also expressed doubts about the official data.

According to the key macroeconomic indicators for 2015, the index of business activity was 3.1% in Armenia, with the agricultural sector showing 11.3% growth, industrial sector, 5.2% and services sector 2.7%.

But even if the index of business activity had been 6%, nothing would have changed in terms of the aforementioned problems.

The economist can not understand such widespread poverty in Armenia with the index of business activity being 3.1%.

“Nor can I understand why people are leaving the country. According to the previous data, the unfavorable balance is about 47,000 people,” he said.

Speaking of the “drivers” of Armenia’s economy, Mr Asatryan proposes “simple calculations.”

Specifically, the gross agricultural produce totaled AMD 993bn the previous. In 2015, the gross agricultural produce totaled AMD 1,002,000,000,000 – an increase of AMD 9bn (a little more than 1% rather than 11%).

In USD terms, the gross industrial output showed a 10.3% decrease as compared with the previous year, the gross agricultural produce, a 12.2% decrease and construction a 8.02% decrease.

Armenia is in a bad situation, the economist concluded.