Armenian government fails to undertake serious steps to develop country’s economy: economist

The 5,8% economic growth registered in 2018 is a normal figure, economist Karlen Khachatryan said, speaking to Aysor.am.

“The 2018 was quite complicated year regarding the economy. We must register that the change of power has created a vacuum in the economy,” the economist said.

He stressed that there was uncertainty regarding the economic rules of game and a decline of economic activity in August, September is agreed with it.

“A bit over 5% economic development may be considered normal, though it was not what we expected,” Khachatryan said.

As to the rapid flight of economy, Karlen Khachatryan said that it is impossible to ensure rapid growth in few months, besides he said, necessary preconditions are necessary for it.

“We should accept that after the change of power in 2018 the government has not carried out any serious economic program but more focused on the municipal issues, organization of parliamentary elections, fight against corruption. No economic program, no serious steps to develop the economy were undertaken which was reflected in the 2019 draft budget,” Khachatryan said.

According to the National Statistical Service, the consumption prices have grown by 2,5% which creates some social issues but is normal in general.

“We should fix that the 2%,3% and even 4% of growth of consumption prices is normal, another issue is that the incomes of the people do not grow that is why even 2,5% creates some social issues in the economy,” he said.

As to the 7,7% decline in the agricultural sector, the economist said the issues there came forth with the water supply.

Khachatryan said the economic growth in 2019 will reach 5%.

“But if the existing programs will not be crucial and no sharp changes will be registered in the economic system we will have 4-5% growth,” he said, stressing that it may be testified by the World Bank’s forecasts for 2019.

“This figures are more realistic though the expectations of the people are more,” he said, stressing that the 4-5% economic growth is not bad but it will not result in improvement of living conditions of the people, who after change of power expected better life.

“For these expectations to come true, the government should carry out aggressive economic policy aimed at improvement of business environment,” Khachatryan stressed.