S. Sargsyan: Armenian economy is at qualitatively new level

Armenia’s economy has undergone two important stages of development and is now at a qualitatively new level and at the same time it is facing new challenges, Armenian President Serzh Sargsyan said at the opening ceremony of the 7th congress of the Union of Industrialists and Businessmen (Employers) of Armenia.

For this reason the country needs a more effective economy and more competitive enterprises, the head of state said. “It is no secret that every country undergoes various stages of economic transformation. According to experts of the World Economic Forum, all states can be divided into groups of countries at 5 stages of development, 3 of which are main stages and two are intermediate stages.

The main priority stage of economic development is an economy that is based on cheap resources and where the final product is formed with the use of cheap and low-quality labor, and these countries are competitive on international markets first of all thanks to export of raw materials,

The next stage of economic development is an economy which develops at the expense of effective production resources. Such countries are capable of withstanding shocks of the outside world as they have a more diversified economy and exports and are relatively less dependent on fluctuations in prices of raw materials on international markets.

The last stage of economic development, which is sought by all developing countries, including Armenia, are science intensive economies, which are characterized by high competitiveness on world markets, a firm economic basis and high productivity of production factors.

A country can undergo these stages rapidly if it sets correct goals for its economic policy, chooses the adequte tactics and implements aggressive economic reforms. It is a correct formula for economic development and it was chosen as a basis of our economic policy,” the president said.\

“This year’s report of the World Economic Forum says that Armenia has overcome the first two stages of economic development and it ranks third among the countries whose economies are based on the efficiency of production resources,” the president said.

In his words, it is an important assessment of the Armenian economy and takes our country to a qualitatively new level of economic development. “On the other hand, it imposes a high responsibility – to remain competitive and ensure economic growth, Armenia should aim to organize more efficient production processes and manufacture high-quality goods,” Serzh Sargsyan said.