The Armenian economy is on course to grow by 5 to 6 percent this year, Economy Minister Tigran Khachatrian said on Friday.
Economic growth in Armenia accelerated to 7.5 percent in 2017, according to official statistics. It hit 9.7 percent in the first quarter of this year, before the start of weeks of mass protests that led to the resignation of the country’s longtime leader, Serzh Sarkisian, and his government.
Data from the Armenian Statistical Committee shows that growth has slowed down since then. The government agency has also reported a sharp drop in foreign investment.
Political opponents of Prime Minister Nikol Pashinian, the protest leader who came to power in May, have seized upon these figures to criticize his economic record. They claim that his government’s policies are scaring away local and foreign investors.
Khachatrian insisted that the dramatic regime change, commonly referred to as a “velvet revolution,” will benefit the domestic economy in the longer term. He argued that the new government has already broken up economic monopolies linked to the former regime and is taking other measures to improve Armenia’s business environment.
“The revolution has led to a greater degree of economic freedom, easier access to the markets and more equal competition,” said Khachatrian. “These are factors that could and should create a more favorable environment for investment-related decisions. But they can’t produce solutions and results at once.”
The minister predicted that the upcoming parliamentary elections, which Pashinian’s bloc is widely expected to win, will also contribute to faster growth. The resulting “stabilization of the situation” in the country will only encourage businesspeople to launch new projects, he said.
Pashinian cited economic considerations when he started pushing for the holding of the snap elections in early October. He said political uncertainty resulting from his team’s modest presence in the current Armenian parliament is hampering economic activity.
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