Eurasian Development Bank Chairman Says Armenia’s Growing Trade Defi


YEREVAN, December 11. / ARKA /. Igor Finogenov, the chairman of the
Eurasian Development Bank (EDB), speaking at a news conference in
Yerevan today said Armenia’s economic activity is quite high – 7.9%
– driven by strong performance in industry, agriculture and service
sectors, but its growing trade deficit which rose to $974 million is
of great concern.

“Given limited foreign direct investment in Armenian economy this year,
the trade deficit remains a challenge for the authorities,’ he said,
adding that 50% of foreign investments in Armenia are Russian.

“In the first post-Soviet years, mutual investments in the CIS
and Georgia were mostly channeled into oil, gas and raw materials
sector, but now we see signs of growth in engineering, real estate,
hospitality, telecommunications, food industries, which need fresh
investments. These are the areas where Armenia is no inferior to
other CIS countries. I am confident that Armenia may succeed in this
direction,” he said.

The total amount of foreign investment in the real sector of Armenian
economy in January-September 2012 decreased by 35.2% year-on-year to
$391 million. Foreign direct investment in the real economy sector
amounted to about $221.3 million, down from $479.4 million in the
first nine months of 2011.

Armenian economy minister Tigran Davtyan said earlier the government
is able to ensure a 7 percent economic growth in 2012. The 7 percent
growth target was set by president Serzh Sargsyan on June 18 as he
chaired the first meeting of his new Cabinet.-0-

From: A. Papazian