Armenia’s 7.6% GDP growth has outdone 2.9% world economic growth and Eurasian Economic Union’s 6%

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YEREVAN, June 6. /ARKA/. Armenian Vice Premier Mher Grigoryan presented Friday in the National Assembly a report on the performance of the state budget for 2019, replacing Prime Minister Nikol Pasjhinayn, who is infected with COVID-19 and is staying in self-isolation at home.

“In 2019, the Armenian economy continued to grow at a faster pace than in the previous year and recorded a growth of 7.6%, which is 2.4% more than last year. It should be noted that over the same period, the global economy has grown by 2, 9%, while average growth indicators in the EU and EAEU were 1.4% and 6%, respectively,” he said.

According to him, inflation in 2019 stood at 0.7%.

“The volumes of loans extended to residents and deposits received continued to grow at a fast pace, and the tendency to lower interest rates on dram loans and deposits were obvious,” the vice-premier said.

Grigoryan also said that in 2019 the state budget revenues amounted to 1.5 billion drams, which is 16.7% or 223 billion drams more than the same indicator in 2018. Tax revenues increased by 16.4% or by 206 billion drams. The ratio of taxes to GDP increased to 22.35, which is 1.6% higher than the projected figure and 1.4% more than in 2018.

“The state budget expenditures in 2019 amounted to about 1.6 trillion drams, providing 92.4% of the updated program for the last year. As much as 95.3% of the expenditures were made from domestic resources, and 4.7% or about 76 billion drams were financed at the expense of foreign grants or loans,” he said, adding that not only the planned expenses were met, but also non-expendable measures were revised.

As a result, he said, in comparison with 2018, expenses increased by 12.6% or by 182 billion drams. The increase in expenses led to an increase in their ratio to GDP, and by the end of 2019, it reached 24.9%, instead of the planned 24.4%. In 2018, this indicator stood at 24.1.

“The budget for 2019 was executed with a deficit of 64 billion drams, which is 41.6% of the planned level. Compared to 2018, the deficit was reduced by 39.9%. At the end of 2019, the deficit to GDP ratio was 1% instead of the planned 2.2%,” said Grigoryan

In the government budget of Armenia for 2019, economic growth was projected at 4.9%, and inflation at 2.7%. In the draft government budget, the revenue should have amounted to 1.401 trillion drams, while actual enforceability amounted to 1.464 billion drams. ($ 1 – AMD 482.11).

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