YEREVAN. – It is quite logical that in the post-revolutionary year the GDP growth is not revolutionary, it is conservative; we have a non-revolutionary GDP growth. This was stated by the member of the opposition Republican Party of Armenia (RPA) faction, economist Mikayel Melkumyan, during the discussion of Armenia’s draft state budget of 2020, at the National Assembly Standing Committee on Financial-Credit and Budgetary Affairs.

He noted that the GDP/capital investment ratio is 17.5-18%. “The explanation implies only 0.6% increase. Now the question is, why is it so low? What is it? We don't expect investments to come? Five percent growth is set for the fifth year. Can you set higher growth rates in the coming years? Investment volumes are far below the desired benchmark.

“Second, if foreign direct investment was 38 billion drams  in January-June 2018, then in 2019 there were 7.8 billion drams. These figures are so far from the desired point on the basis of which we will secure sufficient economic growth,” Melkumyan said.

He also touched upon the structure of economic growth, noting: “You say growth is conservative, now we look at the industry at 5 percent. Your stated approaches to the IT field also do not dispel concerns about what growth we will have there. That is, the quality of growth is not the same. With this growth, the quality of life is not improving.”

In response, Finance Minister Atom Janjughazyan said that if they say that economic growth is not revolutionary, one should start with the part that would be revolutionary. "Do we mean revolutionary by implying that it must pose many risks in terms of stability and, therefore, call into question the fundamental goals underlying such changes? If not, it would be hard to expect two-, three-digit growth here. Sure, it's hard to assess a conservative, but it is non-risk-causing approach. In our opinion, this is the only way that cannot be discussed, that is, we must have a stable environment, and that is not questionable, "Janjughazyan emphasized.

As for the investments, the Minister noted that yes, they also think that the number is not important and they do not go that way. According to him, changing the environment is supposed to be implemented in the next economic cycle. “Every business needs to adapt to a new environment. What we have is our ambition or not? Of course no: In the medium-term, there is a high growth scenario that assumes that, yes, we should see projections of all indicators at a completely different level - 7, 8, 9%, but we must all make every effort to achieve that. Now we are working in that direction,” he said.