400.4 MLN DOLLARS INVESTED IN REAL SECTOR OF ARMENIAN ECONOMY IN 2005

Noyan Tapan
Apr 06 2006

YEREVAN, APRIL 6, NOYAN TAPAN. In 2005, the foreign investment flows
in the Armenian economy (including those received through the state
governance and banking systems) amounted to 504.5 mln USD (a 8.3%
growth on 2004). The foreign investments in the real sector of the
economy (without those received through the state governance and
banking systems) made 400.4 mln USD (a 31% growth), with direct
invsetments amounting to 244.4 mln USD (a 8% growth). RA Deputy
Minister of Trade and Economic Development Tigran Davtian stated
this at the April 6 press conference. According to him, in 2005
the investments were more diversified by sectors, since the foreign
investments of over 7 mln USD were made in 8 branches of the Armenian
economy. 132.1 mln USD was invested in the communication sector, 97.5
mln USD – in the mining industry and 53.3 mln USD – in metallurgical
enterprises, investments of 26.4 mln USD were made in the production
of foodstuffs and drinks, 16.4 mln USD was invested in construction,
14.9 mln USD – in air transport infrastructures, 14.4 mln USD – in
the information technologies and electronics sector, and 7 mln USD
in the sphere of hotel services. T. Davtian said that last year the
number of countries making investments in the Armenian economy was on
the increase. European Union countries accounted for the largest share
of investments (about 50%), followed by Russia, the US, Argentina and
Lebanon. In terms of investments in companies, the biggest investments
were made in VivaCell (Lebanese capital, communication sector),
ArmenTel (Greek capital, communication sector), Zangezur Copper and
Molybdenum Enterprise (German capital, mining industry), Yerevan Brandy
Company (French capital) and Kotayk Beer Plant (French capital). It was
noted that the amount of foreign investments in Armenia’s economy in
2000-2005 made 1 bln 466 mln USD, with direct invsetements amounting
to 962 mln USD. The amount of investments in 1991-2005 made 1 bln
996 mln USD, with direct investments of 1 bln 460 mln USD. The deputy
minister underlined that the foreign investments/GDP ratio of 10-12%
registered in 2005 is not yet satisfactory.

According to T. Davtian’s forecasts, in 2006 the amount of foreign
investments in the real sector of the Armenian economy (without
those received through the state governance and banking systems)
will exceed 500 mln USD.