Economist: Poverty rate to reach 42% in Armenia by late 2022

REGION  29 November 2022 - 19:17

Tatul Manaseryan, head of the Alternative research center, has said that the rise of poverty rate amid economic growth in Armenia is paradoxical.

The poverty rate in Armenia was calculated for the last time in 2020, Manaseryan said at a press conference, Caliber.Az reports citing the Armenian media.

According to these data, almost half or 47.6 per cent of the Armenian population are poor, while 0.7 per cent of the country's inhabitants are always hungry. Data for 2021 will be available at the end of 2022.

“Economic growth envisages an increase in the income of citizens, in the standard of living, and a reduction in poverty rate in the country. However, the poverty level continues growing in Armenia, despite the double-digit growth of the economy,” Manaseryan said.

The economist noted that the government is pursuing the wrong economic policy, and the draft budget for 2023 does not envisage the solution to the important problems that could help overcome the post-war crisis.

He added that the funds from the state budget are directed to increase the salaries of police officers rather than to the priority spheres such as security and strengthening of the army.

Manaseryan noted that the Cabinet of Ministers should first of all implement targeted programmes for the improvement of a particular sector of the economy, and abandon the practice of cosmetic reforms.

“About 300,000 relocators from Russia, Ukraine, Belarus and other countries arrived in Armenia. This is almost 10 per cent of our population. This circumstance cannot but affect the economy. However, the most important thing is to reduce the level of poverty, which is approaching 42 per cent,” he noted.

The economist added that one of the ways out of this situation is to improve the quality of education, the standard of living of young people, and attract them to various sectors of the economy.

Manaseryan is sure that it is necessary to stop the brain drain from Armenia.

Caliber.Az