“EEU- obstacle for development of Armenian-Georgian business” (video)
“2016 was a hard year for Armenia’s economy,” said economist Atom Margaryan during the discussion, entitled “Regional Economy: Problems and Prospects in Armenia and Georgia”, “By and large, 2016 was a year of missed opportunities. The spheres, which are in bad condition- agriculture, construction, have great influence on economic growth, that’s why we have such a picture.” According to Mr Margaryan, the year wasn’t favorable also in terms of investments, “The sources, which traditionally nourished several Armenian spheres- mining, energy, construction, the elimination of those sources affected the development of the RA economy,” he noted, adding that during 9 months of this year USD 92 million have been invested in our country, which is very little. Atom Margaryan added that this year deflation made up 1.4 percent, which is high index of decline in macro-economical demand. “Inner debt has increased by 45 percent. The Government, with the support of the Central Bank, managed to ensure budget sustainability at the expense of increase in inner debt,” said the economist. Maya Grigolia, Research Director at Policy and Management Consulting Group of Georgia, also participated in the discussion through video call. According to her words, in Georgia in 2016 there has been 2.3 percent economic growth, “This year we have had serious economic challenges. The main economic problem remains high foreign currency rate to lari. In Georgia the biggest part of crediting is carried out by dollar, but as lari depreciates, it is big problem for us,” noted Grigolia, adding that imports have increased and exports have decreased in Georgia. According to the words of Shushanik Safaryan, economic sphere researcher of Policy and Management Consulting Group, there are rather favorable tax conditions in Georgia, which can attract Armenian businessmen, “But the matter is that delicate changes are happening in Armenia in connection with the membership in the EEU, and, more likely, legislative changes will be made in entrepreneurship sphere, which may create obstacles for establishment of Armenian business in Georgia.” In reply to this, Atom Margaryan added that the EEU format hasn’t given serious, significant development signals for the RA economy. Ashot Kurshudyan, one of the speakers of the discussion, added that the largest assortment of goods is exported from Armenia to two countries- Georgia and Russia, “It means that we should continue developing economic ties with Russia and Georgia, in particular.” Shushanik Safaryan noted that after Armenia’s joining the EEU value added tax within the frames of trade with the EEU countries was eliminated. “Georgia has an agreement of free trade with Armenia, but if the RA citizen wants to buy a car from Georgia, he must pay 20 percent more. Naturally, he will prefer to buy a car from Russia.”
