Economist considers new conceptual situation President Sargsyan’s emphasis on inclusive economic growth

YEREVAN, FEBRUARY 28, ARMENPRESS. Doctor in economics, professor Hayk Sargsyan – dean of the YSU Faculty of Economics and Management, considers a new conceptual situation the emphasis of President Serzh Sargsyan according to which the economic growth should be inclusive and affect every citizen.

Hayk Sargsyan told Armenpress that in such circumstances the Armenian government will direct its activity for increasing the population’s prosperity, but this requires sufficient mechanisms.

“The President clearly defined the task that the economic growth should eventually contribute to the economic development, and one of its components is that each member of the society feels that this growth has been recorded”, the professor said, adding that in the conditions of income over-polarization, the impact of the economic growth on different layers of the society is not characterized for sure.

Hayk Sargsyan says inclusive economic growth can be ensured by increasing the pensions, incomes of public officials. In line with this, the private sector also must be able to proportionately solve the issue of hired workers.

Commenting on the question according to which by the 2018 state budget there are no plans to increase the social expenditures, how it will be possible to ensure an inclusive economic growth, Hayk Sargsyan said the economic development leads to increase in capacities in case of which everyone can have an increase in incomes perhaps not from the budget. “I think this path of development – increase of result through investments, which will lead to increase in budget resources, will solve these issues in the upcoming years. Moreover, it has no alternative, the investments should be constant and desirable at least by 1/5 of the GDP”, he noted.

Hayk Sargsyan stated that as announced, investments up to 1 billion USD were made in Armenia’s economy last year, but he added that this is not enough. “Our investments should exceed the threshold by up to two times so that we will have the same 7% or more economic growth. If this economic growth continues for several years, many problems will be solved. When the base changes, that 7% becomes a new threshold for greater opportunities. And as I said, these opportunities exist”, he said.

President Serzh Sargsyan on February 27 held a consultative meeting with the country’s socio-economic policy-makers to discuss and summarize the results recorded in the socio-economic sphere in 2017. The President urged the meeting participants to provide for inclusive economic growth, stressing that all the layers of society, and especially the vulnerable groups, should benefit from economic growth.

Interview by Ani Nazaryan

English – translator/editor: Aneta Harutyunyan