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Acting PM calls consultation to discuss economic situation and development trends


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Acting Prime Minister Nikol Pashinyan called a consultative meeting to discuss economic situation, forecasts and development prospects with Ministry of Finance representatives and the heads of the government agencies representing the financial-economic sector.

Acting Minister of Economic Development and Investments Tigran Khachatryan presented the 9-month macroeconomic indices as published by Armenia’s Statistical Committee, noting that the economic activity index was 6.5%, higher than the 5.8% increase stated in the same period of 2017. 11.5% growth was reported in the export sector. In industry the index is fairly close to the target: 4% instead of the planned 5%; in construction - 7.6%, instead of 6.1%, in the tertiary sector - 19.1% instead of 8%.

T. Khachatryan advised that the monitoring of 275 industrial enterprises had revealed 875 billion drams-worth output released over the past nine months of 2018, which is equal to the nominal value of the output produced in the same period of 2017.

The following are the most influential sectors of the economy: mining, brandy making and metal casting. Textile, pharmaceuticals, food processing and other industries have recorded an increase of about 30% in overall output.

SRC Head David Ananyan reported back this year’s interim results, noting that the planned indices will have been met by the end of the year.

Speaking about inflation, CBA Chairman Arthur Javadyan said that the indicators were positive as compared to 2017. The toolkit being applied by the Central Bank is expected to help compete the fiscal year with a 3.3-3.5%, or even a 3% index, which means that the forecasted inflation will not reach 4% and above.

Touching upon the banking system’s development, the CB Chairman noted that loans are on the rise. Since the start of the year, the volume of mortgage loans has increased by 10.5% to 22 billion drams, totaling 231 billion drams.

Loans to industry and agriculture have increased mainly in terms of business crediting. Artur Javadyan advised that a new arrangement was signed with the European Investment Bank a few days ago to the amount of € 50 million, which will focus on export promotion, tourism and agriculture. The Acting Head of Government was also informed of the ongoing large-scale investment programs, including the infrastructure-related ones.

During the exchange of views that followed, a number of issues were discussed, related to structural changes in the economy, budget spending, per-sector reforms, investment projects, tax reforms, etc.

Summing up the consultation, Nikol Pashinyan instructed the responsible government officials to once again address the effectiveness of major projects, particularly in road construction, energy, water infrastructure and solid waste management, as well as to streamline the future plans and work out new development programs.

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