WHY THE GROWTH OF INDUSTRY SLOWS DOWN
Vasak Tarposhyan
Hayots Ashkhar Daily
08 Oct 2008
Armenia
During the recent eight months Armenia’s industrial growth made
up 2,2%.
By this index Armenia runs 8th among the 9 CIS countries, before
Tajikistan, where the industry is facing crises.
What is the reason of such a slow growth? Minister of Economy Nerses
Yeritsyan answers the questions of the correspondent of "Hayots
Ashkharh" daily.
"It is conditioned by the swift growth of other spheres."
"So does that mean that if all the other spheres of economy grow
swiftly industry shouldn’t grow?"
"Yes, because the investments are directed to other spheres. The factor
of making profits plays a significant role here. To have industrial
growth we must firstly be able to strengthen economy’s innovation
sector, which requires private-state cooperation and investments in
different investigations. Today it is impossible to develop economy
without the before mentioned.
Of course there are big investments and in average terms the economy
will maintain its specific gravity. But in long-term sector we must
be able to set up a group of small and average enterprises to create
new industrial values of innovation direction."
"Which are those spheres that develop on account of economy?"
"Services, construction, etc. It is natural because we hav e problems
connected with reconstruction, renovation; we want to live more
comfortably."
"How long will the slow growth of industry continue?"
"In terms of structural changes the specific gravity of the services
is very low in our reality, as compared with Eastern Europe and
many countries.
Especially in terms of real estate deals, tourism, financial and
consultative services. Here we have lots of place to grow. And it
is not less important than industry. In those spheres the working
results of one employee can be more than in industry."
"Especially during the recent one-two years the negative balance of
Armenia’s foreign trade has grown. Isn’t it dangerous?"
"At this stage of development the trade balance usually deteriorates,
in all the countries which are not engaged in oil expert. For example
let’s take Georgia, Azerbaijan (without oil), Trans-Baltic countries,
Poland, Greece, etc. The trade balance of all those countries is no
less negative in all the before mentioned countries than in Armenia.
Moreover in case of Armenia it is even in a favorable condition
as compared with GDP. The main tendency is, that at the aggressive
stage of development a big flow of importing capital takes place,
and trade balance grows."
"Does this mean that there is no need to worry?"
"Anyway there is no need to worry. But we shouldn ‘t struggle to reduce
the investments. We should rather struggle to increase exporting. It
will take one-two years. Because the problem is not only in industry
but also the accessibility of the markets. We must have qualified
products to have access to the markets. This is the problem that we
will face during the coming two years.