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    Categories: 2017

ARMENPRESS sums up key economic events of 2017

Armenpress News Agency , Armenia
 Friday


ARMENPRESS sums up key economic events of 2017



YEREVAN, DECEMBER 29, ARMENPRESS. Starting from the formation of new
government up to investments, signing of Armenia-EU agreement, high
economic activity index: 2017 was full of numerous economic events.

ARMENPRESS has identified the most important economic events and the
macro-economic indicators of 2017.

Armenia-UAE Investment Forum in Abu Dhabi

The Armenia-United Arab Emirates Investment Forum was held in Abu
Dhabi in spring with the participation of Armenian President Serzh
Sargsyan. The Forum aimed at boosting the economic ties between
Armenia and the Arab states, as well as the contacts between the
businessmen. Presentations on agriculture, animal husbandry, energy,
healthcare, pharmaceutics, IT, tourism were held, the successful
stories of foreign companies in Armenia, as well as a number of
investment programs were presented.

As a result a memorandum of understanding on investments worth 100
million USD was signed between Armenia’s ministry of energy
infrastructures and natural resources and UAE Ocean Holding LLC. The
Ocean Holding LLC aims at directing investments for construction and
operation of solar power plants in Armenia by using the best
technologies available in the field.

Russian Prime Minister Dmitry Medvedev’s official visit to Armenia and
the session of Eurasian Inter-governmental Council in Yerevan

Russian Prime Minister Dmitry Medvedev, who arrived in Armenia to
participate in the session of the Eurasian Inter-governmental Council,
announced that the line of economic difficulties between Armenia and
Russia is overcome, and the trade turnover is being restored. At the
meeting with reporters the Russian PM said Russia will keep the
special gas tariff for Armenia in 2018.

The session of the Eurasian Inter-governmental Council was held in
Yerevan with the participation of the heads of government of the EAEU
member states. The PMs reached an agreement on the program of forming
a single oil market, and the works over gas will continue.

Establishment of Investors Club of Armenia and announcement of first
major programs

In early 2017 the Investors Club of Armenia officially launched with
the participation of the Armenian PM Karen Karapetyan and more than 3
dozen businessmen of the Armenian Diaspora of Russia. In autumn the
Tashir Group of Companies announced about the plans to make more than
1 billion USD investment in Armenia’s energy field in the upcoming
years together with the Investors Club of Armenia and international
financial organizations. 900 million USD from the investments will be
directed for the reconstruction of energy infrastructures and
installation of energy audit devices, 200 million USD will be used for
the construction of Shnogh hydropower plant.

Presentation of third series banknotes sketches

On November 22, on the occasion of the Day of Armenia’s National
Currency, the Central Bank presented the sketches of third series
banknotes to be issued in 2018. The banknotes will feature poet Paruyr
Sevak (1000 AMD), chess grandmaster Tigran Petrosyan (2000 AMD),
writer and dramatist William Saroyan (5000 AMD), composer Komitas
(10,000 AMD), painter Ivan Aivazovsky (20,000 AMD), and Saint Gregory
the Illuminator (50,000 AMD). The printing will be conducted by
Giesecke&Devrient company.The banknotes will be put into circulation
on November 22, 2018 on the 25th anniversary of the national currency.

Signing of Armenia-EU Comprehensive and Enhanced Partnership Agreement

On November 24 Armenia and the European Union signed the Comprehensive
and Enhanced Partnership Agreement in Brussels. The sides expressed
commitment to strengthen the comprehensive political and economic
partnership and cooperation based on common values and close ties.
According to specialists, the agreement will directly contribute to
economic growth and job creation in Armenia.

Meghri Free Economic Zone launched

At the end of the year the Meghri Free Economic Zone launched its
activity with the participation of Prime Minister Karen Karapetyan.
The total cost of the construction of the Meghri FEZ is 32 million USD
from which 28 million USD are capital expenditures. During the FEZ
activity it is planned to attract 50-70 operating companies which will
make nearly 100-130 million USD investments, will create about 1500
jobs and will export goods and services worth 250 million USD. The
companies operating in the FEZ will be exempt from profit tax, VAT,
excise tax and customs duties, paying only the income tax.

Macro-economic indicators and monetary-loan policy

7.3% economic activity growth was recorded in the 11 months of 2017.
The export for the first time exceeded 2 billion USD. In
January-November a double-digit growth was recorded in the services
field (14.2%), trade turnover (14.4%), industrial production volume
(12.3%), external trade turnover (26.4%), export (23.5%) and import
(28%).

Finance minister Vardan Aramyan told reporters that the economic
situation in 2017 was good than expected. He expressed confidence that
by the end of the year the real growth will be in 5.5-6%. Under the
2017 budget the GDP growth was expected to be 3.2%, but during the
year the government revised the prediction for the economic growth,
reaching it to 4.3%, and it predicts 4.5% economic growth for 2018.

In 2017 the Central Bank continued conducting a promoting policy.
Since 2015 the refinancing rate was reduced 12 times, and at the
moment it is 6%.

Ani Nazaryan

Andranik Taslakhchian:
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