During the last two years, Armenia managed to register impressive growth in the field of economy. This is contrary to all expectations that the problems created in the Russian economy as a result of the Russian-Ukrainian war will also be transferred here.
The opposite happened, mainly at the expense of trade and services. “Thanks” to the Russians and Ukrainians who moved to Armenia for residence; the country has a certain vitality. It is no coincidence that the primary growth was recorded in trade and services and related sectors.
The indicator of economic activity in 2022 was 14.2%; a 12.2% increase was recorded in the first quarter of this year. The increase in budget revenues is also evident. In January-March of this year, the services sector grew by 22.9 percent and trade by 21 percent. A double increase was recorded in the field of foreign trade turnover. Export increased by 2.3 times, and imports increased by 89 percent.
However, it is evident that the country’s economic growth is both encouraging and problematic. The question of the continuity of economic growth in the long term is complex. Economists have said this many times, warning that when the Russian-Ukrainian war ends, when the Russians and Ukrainians move to Armenia leave, economic growth will drop sharply.
Prime Minister Nikol Pashinyan also spoke about the potential of Armenia’s economy at the last session of the government. And the potential of our country is small. “We constantly hear from our economists that Armenia’s economy has been growing more than its potential in recent years; the real potential is much less than the economy is growing. The economy may suffocate, and we want our development potential to increase,” he said at the government meeting.
It should be noted that labor resources, industry production capacities, agriculture, construction, development of the country’s transport networks, social infrastructures, and scientific and technological progress are among the main factors determining economic potential.
As a result of emigration in previous years, the country’s labor resources were reduced, leaving a negative impact on other branches of the economy. And it is no coincidence that after the arrival of many foreigners, the economy gained new momentum.
And now, increasing the real potential of economic growth should become an overarching problem for the government, without which the continuation of economic growth is unlikely. And as long as it is possible to capitalize on the development, hurrying is necessary.
