Armenia's economy lacks development Expert highlights concerns

Armenia's economic landscape has come under scrutiny as economist Vardan Bostanjyan sheds light on the challenges facing the country's fiscal health.

Bostanjyan expressed grave concerns about the state of Armenia's economy, highlighting significant gaps in development as he spoke to Armenian media, Caliber.Az reports.

"Due to tax exemptions, Armenia's budget is expected to receive 630 billion drams, or more than 1.5 billion dollars at the current exchange rate, in 2024," Bostanjyan said.

However, he pointed out that these benefits were not directed towards companies in high-tech sectors, but rather to those involved in mundane activities such as bottling tap water.

Bostanjyan emphasized the stark reality: "there is no economy as such in Armenia." He highlighted the absence of a robust industrial sector and a lagging agriculture industry, indicating a structural deficiency within the country's economic framework.

"The activity we witness is merely a flow of money into Armenia, but it does not development," Bostanjyan remarked, underlining the urgent need for a strategic overhaul in economic policies.

The lack of a diversified economy, according to the economist, poses serious challenges for Armenia's future growth and sustainability. Bostanjyan expressed skepticism about the current administration's grasp of the gravity of the situation concerning both security and economic development.

"Armenian authorities seem to have distanced us from countries that were crucial partners in the security sphere," Bostanjyan lamented. He also criticized the reliance on mere rhetoric from certain quarters, emphasizing the need for concrete actions to spur genuine economic progress.