YEREVAN, AUGUST 30, ARMENPRESS. 3,3% decline in GDP has been registered in Armenia in the first quarter of 2021 according to the economic research carried out by the Eurasian Expert Club.

Member of the Club, Doctor in Economics, Professor Tatul Manaseryan told a press conference in Armenpress that the domestic political developments and snap elections in Armenia have left their impact on the economy.

“2020 was a declining year for us [coronavirus pandemic and the 44-day Artsakh War]. In 2021 as well the domestic political developments, the snap elections have left their impact on our economy. We expect that the economy of Armenia will pay more serious attention to the science financing in the coming years. The investments in infrastructure are also important. We expect that the analysis of expert community and economists would be demanded which will help decision-makers to take scientifically-based actions”, Manaseryan stated.

Presenting Armenia’s economic situation in the first half of 2021, the economist said some improvement in economic indicator has been observed that period.

“GDP decline by 3.3% has been registered in the first quarter of 2021. Compared to the same period of 2020, GDP has been dropped by 34.8%, which is quite a concerning figure. Positive signs are seen in other areas, especially in the field of agriculture, which is connected with the more favorable weather conditions. This in turn allowed to increase the export rates”, Manaseryan said, adding that Armenia’s economy is currently at a recovery stage.

He attached importance to paying attention to solar energy and alternative energy in general. According to him, this field is the future of Armenia and especially Artsakh as energy infrastructure are under the adversary’s target.

As for the expectations, the economist noted that the forecasts on Armenia’s economy are positive.

“In general, if we talk within the context of Armenia’s membership to the Eurasian Economic Union, 3.8% growth in GDP is expected in all countries – Armenia, Russia, Belarus, Kazakhstan and Kyrgyzstan. In 2020 the GDP registered a 2.9% decline. The economy of Belarus, which has its peculiarities, is expected to grow by 3.3%, for Armenia we forecast 6.5-7% growth which would not compensate the 8% decline registered last year. We do not rule out more positive dynamics”, he said.

As for inflation, the professor said combined actions are needed here.

“We must in all possible means direct our intellectual potential to the GDP growth. There are restraining factors for this, for instance inflation. In order to restraint this phenomenon, coordinated actions are needed which will be carried out by the ministry of economy, the state commission for protection of economic competition, the ministry of finance, the state revenue committee and the central bank”, he said.

The economist also informed that international organizations made positive forecasts for the economies of Armenia and Russia.

Editing and Translating by Aneta Harutyunyan