Armenia must be the most favorable and safe country for all Armenians to live and express themselves: Serzh Sargsyan

Armenia must be the most favorable and safe country for all Armenians to live and express themselves. Every citizen must have his participation in the process of becoming such by forming a strong and fair state, President Serzh Sargsyan said in his speech at the first session of the newly elected Parliament.

“For achieving our goal, implementing and designing economic policy aimed at ensuring sustainable long term economic growth has important significance. Moreover, combined monetary and fiscal policies must create such a dynamic and stable macroeconomic environment, which will enable to reach both shortterm and medium and long term stable economic growth, by ensuring the target indicators for 2040,” he said.

According to the President, it is necessary for the average annual pace of economic growth to be significantly higher than average international economic growth paces, in order for the per capita GDP indicator difference between Armenia and developed countries to be gradually reduced.

Particularly, in 1990-2015 Armenia’s GDP has reached 10 billion 529 million dollars from 2 billion 257 million dollars, growing nearly 4,7 times. In 2016-2040, we must also provide an annual average 5 percent GDP growth and reach more than 57-50 billion dollars GDP indicator – providing over 5 and a half times growth. GDP per capita is planned to be reached over 15000 USD from the 2015 3500 USD in 2040, taking into account both the growth pace and the planned improvements of the demographic situation.

Taking into account Armenia’s peculiarities and the current economic situation, the state must also have proactive involvement in the economy, according to the President. The state must encourage and promote especially competitive sectors, sectors having great export potential and mostly those which are based on local resources, and why not specific program development and implementation.

“Particularly, we have achieved significant successes in the state-private sector cooperation in the infrastructure, namely water supply, air transportation sectors, however many branches of the economy are yet aside from the abovementioned favorable results of cooperation. Therefore it is necessary to implement specific targeted work in various branches of the economy for raising the accessibility of state-private sector partnership and enhancing opportunities of implementation, taking into account both international and Armenian experience,” he said.

Sargsyan said it is necessary to continuously improve the business environment and eliminate business obstacles. “Our goal is to improve our ranking in the ‘Doing Business’ statistics and reach the top 20 during the coming 4-5 years and have a stable position in the top 15 in the future. We need this very much. It is necessary to break the stereotype under which it is easier for Armenians to achieve success abroad. Yes, indeed, it is incomparably difficult for us to compete against one another, than against foreigners, but this must not be an obstacle for Armenia’s economic development, but rather a significant boosting force and a precondition.

Imagine how difficult it will be for foreigners to compete with united Armenians. The key to success is for us to create the conditions and boost the sectors and development programs where the main competitors are in foreign markets, i.e. the production and services are predominantly aimed at exports,” he said.

The President said promoting exports and increasing competitiveness will result in exports of products and services reaching up to 40-50% of GDP during the upcoming five years, and then by maintaining the same trend, it must reach 50- 55 % of GDP in 2040.