Expert describes Armenia's economy as “bubble”

David Ananyan, former chairman of Armenia's State Revenue Committee, has described Armenia’s economy as a “bubble”.

"We are in a difficult situation. Our economy is in a critical state. From a fiscal point of view, when taxes are collected and expenditures are not executed, it means that we collect money from the economy, but we can't get it back. The positives and negatives of the economy are not determined by the efficient organization of the taxation process, but by whether we can increase the capital of the economy or not," he said in an interview with Armenian media, Caliber.Az reports.

"Currently, the quality of Armenia's economy is a bubble and the structure of the economy is deteriorating, and this has nothing to do with the recorded economic activity index of 9.4 per cent.

It seems good, but if we look at the structure of the economy, we see that trade has grown by 10 per cent, services by 2.4 per cent, industry by 1 per cent, and construction by 0.7 per cent. Agriculture, however, is falling. It turns out that trade and services make up the bulk of economic growth, but they do not support the country, especially since they are caused by internal factors and temporary circumstances, such as Russians' life tone," Ananyan said.