The Armenian Government Action Plan for 2021-2026 to Boost the Economy

The situation in Armenia seems to get into a brighter place, even though the last months have been blighted by the conflict with Azerbaijan, the neighboring country. Prime Minister Nathan Porter presented a five-year action plan that will seek to boost all the sectors of the national economy.

The Government´s Action Plan for 2021-2026 consists in reforming the Armenian economy and already counts with the support of the European Union with an economic package of USD 3 billion and other countries of the region as they are also aiming to strengthen the democracy and support the development of infrastructure and industry in the country.

According to the finance minister, Vahan Kerobyan, the government is aiming for a 7% annual economic growth or even 9% in case the conditions in this period are positive. This will be possible with the new mechanisms to support the investment in Armenia for a transition to a investment-based economic growth. The government will also support important sectors like agriculture, where according to the minister, it’s planned to allocate approximately USD 35.8 million.

Among the projects that this government´s plan is going to bring to this nation, we can find the development of infrastructure, going from roads to connect the most remote territories to reservoirs, and education projects that will certainly improve the quality of life of the Armenian people.

Furthermore, the government is also planning to raise the minimum salary and provide economical help to families regardless the social status as part of their plan to reduce poverty within these five years to fewer than 10% of the country´s total population.

The support that the Armenian plan has received from the international community is a sign of the trust that the government has gained in recent times. Before the pandemic, Armenia was one of the fastest-growing economies in the Eurasian region, and the explanation of this can be found in the way the government has managed the economy. 

For this reason, it is important to highlight that Armenia already has shown some signs of improvement and it is expected that the Government Action Plan for 2021-2026 will be a complete success for the country. If you want to know more about Armenia and the opportunities in this territory you can contact us here at Mundo.

World Bank Forecasts 6 Percent Growth of the Armenian Economy

In general, the world´s economic recovery has been faster than expected and the Armenian economy is not an exception as its showing positive signs in all the international indicators, including the world bank economic growth forecast where is showing a 6.1% economic growth prevision for this year. According to this institution, economic growth is measured by the change in the volume of its output or even in the real expenditure or income of its residents.

The importance of this prevision resides in the change that has suffered since the start of the year when the most optimistic forecast showed only a 3.4% economic growth in Armenia.

Consequently, this represents a positive sign of recovery for the nation.

This change in the previsions can be attributed to the five-year action plan that was presented by the Armenian government. In addition, Carolin Geginat Country Manager of the World Bank for Armenia recently had a meeting with the Minister of Justice, Karen Andreasyan, and highlighted the importance of the agenda in key areas such as anti-corruption.

This rebound was also supported by exports of oil and metals that rose due to the existing demand. Within the planning scheme, the government will also seek to increase the state revenue by 25% in the following years to reduce the country’s budget deficit and rise the public spending by 15% to support social growth and development. However, the World Bank expects that the recovery in Armenia slows down to 4.8% only to accelerate in the following years to finally settle in a 7% annually. 

In conclusion, Armenia is a small nation that only counts with a population of three million people and this year has achieved an admirable economic recovery, and this can be attributed to the government policy and planning for the future and the support of the international community. If you want to know more about Armenia you can contact us here at Mundo.

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Russia Plans to Invest $1B in the Armenian Economy in the Near Future

The last year has been complicated for the Armenian people due to the pandemic. However, the picture seems to be changing with the arrival of new economic opportunities for the Eurasian nation. In the last months, the Russian government announced in the eighth Armenian-Russia Interregional Forum held in Yerevan that they are planning to invest USD 1 billion in the Armenian economy.

This is important because Russian already represents 40% of the foreign investment in the country, and according to the Deputy Minister of Economic Development of the Russian Federation Dimitry Volvach, this plan will support the creation of new high-tech jobs in Armenia and will certainly ease the cooperation in several areas including the economy and development.

According to the Russian representative, the investment cooperation between the countries is growing and currently, there are more than USD 2.2 million of jointly accumulated investments from Russian to the Armenian economy and then, the Deputy concluded stating that hopes that Russia maintains its role and significance in the country´s economy. 

In addition, Economic Development Minister Maxim Reshetnikov confirmed the interest of Russian companies to invest in the Armenian economy and also mentioned how the countries are drafting an interregional cooperation treaty. It is important to highlight that Russia and Armenia already have 19 cooperation treaties.

To conclude, Armenia has recovered faster than expected from the effects of the Covid-19 pandemic and the evidence can be found in the interest of an economic power like Russia in doing business on the Armenian territory and contributing to the economic growth and development of this nation. If you want to know more about Armenia you can contact us here at Mundo. 

Business People Reach Agreements during Armenia-Iran Forum in the City of Yerevan

In recent weeks, a delegation of high-tech companies coming from Iran attended the city of Yerevan under the scheme of the Armenian-Iran Business Forum that was held to boost commercial ties and cooperation between the country’s businesses and investors.

According to Masoud Hassani, the director of Rhyton Solutions, an important company in the area of Intelligent Information Systems in Iran, some cooperation programs in the area of information and technologies are already in place, and after the forum now they can implement even bigger programs in different formats. The director also mentioned that after the forum they will have several meetings with the information and technology companies in Armenia.

In addition, Emade Askaria who was also present as a member of the Iranian delegation stated that the forum had as an important goal to enhance the cooperation between the countries. According to the representative, they want to start production in Armenia and enter into the global market.

The forum counted with the participation of 50 different companies and this is only the start of this relation between Iran, Armenia, and the development of Information Technologies in the country as they are also aiming to offer the largest technology event so far according to the information shared by the Ministry of High-Tech Industry and Union of Advanced Technology.

High technology is a growing industry in Armenia, and these types of events will also work as a bridge to connect with international companies and discuss key challenges and opportunities for the future. If you want to know more about this country you can contact us here at Mundo.

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