Wednesday, 17 February 2016
Ministry of Economy, GDCA Submit 2015 Performance Reports
Chaired by Prime Minister Hovik Abrahamyan, the Cabinet discussed today the annual performance reports submitted by the Ministry of Economy of the Republic of Armenia and the General Department of Civil Aviation (GDCA), which covered the agencies’ key activities, their compliance with the Government’s action plan, priority tasks and estimated performance in 2015.
Minister Karen Chshmaritian noted that during 2015 the efforts of the Ministry of Economy were mainly focused on the development potential and opportunities to improve the competitiveness of the economy, the implementation of measures aimed at improving the business and investment environment, expanding the promotion of SMEs, strengthening the foundations of innovative economic development. According to the minister, in the context of the world economy at the beginning of the year international organizations forecasts GDP growth in Armenia was published in 2015 (World Bank - 0.0%, the International Monetary Fund - 1.0%, the European Bank for Reconstruction and Development -1.5%).
And despite the negative impulses of unfavorable development of the world economy since the end of 2014 and during 2015, in January-September 2015 in Armenia was registered 3.5 percent growth in GDP, and gross proposal formed mainly due to export industries. According to Karen Chshmaritian in January-December 2015, the economic activity index was 103.1%. December 2015 compared to December 2014 amounted to 100.7%, and in December compared to November - 120.4%. The growth index of economic activity contributed to all sectors, with the exception of trade turnover.
According to Minister Chshmarityan, in economic terms, the year was difficult, due to a number of factors, but even in this situation, in January-December 2015 industrial production amounted to 1.3 trillion drams, the growth amounted to 5.2% compared to the same period last year. It should be noted that the increase is also due to the involvement of new companies, particularly in the areas of mining, production of medical equipment, hothouse, beer production, and in other areas, that in these conditions can also be considered an achievement.
The Minister of Economy said that the registered in the industry of 5.2 percent growth impacted implemented during the year coordinated work of state-private sector and some of the initiatives, including the implementation of the industrial policy of a number of industry organizations have received state support in various areas: during 2015 the industrial activities of credit subsidies received 16 having export-oriented companies, the purpose of certification in foreign countries, and co-registration of medicines granted 12 applications 8 companies, to participate in international exhibitions and other purposes have received more than 350 companies with export orientation.
Karen Chshmarityan stressed that the export promotion council as established by the Prime Minister’s decree of January 13, 2016 might help to stimulate the export of local products and an increase in the share of local production, as well as the development of the real sector and the creation of new jobs. The priority types of local wine products have been identified to support their export, fruit vodka, canned goods, meat and fish products.
It was also reported that in January-September 2015 net flows implemented in the real sector of the Armenian economy foreign investments amounted to 296.7 million US dollars, exceeding the index of the same period of 2014 by about 80 million US dollars. Meridian free economic zone was commissioned with investment worth about 14 million US dollars made in the FEZ. The companies involved will make USD17 million-worth investment and generating thus about 160 new jobs. Operator’s certificates have been granted to 2 companies in Alliance free economic zone, which is expected to boast about USD 10 million investment and 80 new jobs.
Minister Chshmarityan advised that last year was successful for the sphere of information technologies: over 450 companies are involved in the IT sector strong with about 13,000 professionals, the annual turnover amounts to about USD 550 million, an increase of more than 17%. According to him, the RA Law “On State support for information technologies” was successfully enacted in 2015, which enabled tax benefits for start-up companies through the application of 0% income tax rate and a 10% income tax rate. The aforementioned incentives stimulated the creation of new companies in the field, and jobs. 79 start-up companies and 329 new jobs were created.
It was reported that the National Center for Development of Small and Medium Enterprises of Armenia and Universal Credit Organization CJSC provided financial and investment support to 225 newly established and already existing economic entities; the total amount of loans amounted to about 5.4 billion drams with the interest rate of about 10% per annum. 89% of the loans made available in 10 Marzes, and 10% - in Yerevan.
Economy Minister Karen Chshmarityan noted that after the adoption of the policy of Open Skies on the Armenian market entered a new airline, and returned before serving the market of Qatar Airways, Aegean Airways, Georgian Airways, Iraqi Airways, Al Naser, Mahan Air, Middle East Airways, S7 Airlines, LOT. The flight frequency increased by 3% in 2015 as compared to 2013, while passenger traffic - by 11%. As of the end of December, 2015, the number of airlines offering regular flights to Yerevan was 21.
Head of the GDCA Artyom Movsisyan informed that Armenia’s performance proved above the global average on the basis of indicators established by the relevant documents of the International Civil Aviation Organization (ICAO) as developed and approved by the Government of the State program of safety. As a result of the audit carried out by the ICAO in the framework of the ICAO Universal Safety Control Program (USOAP) in 2015 in different directions (legislation, organization, certification, and training, maintenance, flight availability, investigating accidents and incidents, air navigation services, aerodromes and ground funds).
Positively assessing the work done in the period under review, Prime Minister Abrahamyan noted that extensive work had been carried out in different directions. He pointed to the importance of intensifying economic relations with the European Union, noting that the talks on economic issues are pinned on a solid foundation. According to the Prime Minister, a lot of work has been done in terms of ensuring industrial growth and improving the business environment.
The Prime Minister noted the importance for the Ministry to build on the achievements recorded in the sphere of information technologies, diversification of external economic relations, implementation of inspection reforms and attraction of foreign investment.
