Real state of Armenian economy is extremely bad, newly appointed prime minister says
The real state of the Armenian economy is extremely bad, the newly appointed prime minister Karen Karapetyan said during a parliamentary Q&A session today.
He said his government’s plan of actions that will be implemented in two stages, will focus on economic development. The first stage will include all possible rapid changes that can in some way inspire confidence in the program, while the second stage will be a long-term vision of the country's development.
"We have no expectation that we will be able to make quick positive economic changes, but we will be giving impulses in what direction it will develop,' said Karapetyan.
He noted that the new government’s plan of actions will use some important aspects of the previous government’s program; however, the main policy will be the policy of creating added value.
"There will be no rapid changes, but it does not mean that no steps will be taken. In the first place the emphasis will be put on reducing social tensions and economic development,’ said Karapetyan.
The Armenian economy will not have a chance to revive without the reduction of the informal sector, Karapetyan also said. According to him, changes in taxation laws or other areas will not help to fully restore the economy and ensure its development.
"I am willing to be open, honest and sincere, and I can say that the Armenian economy has no chance to recover without cutting the informal sector, and we are strongly focused on fighting against it, because we have no other options,’ Karapetyan said.
The head of government said he is familiar with the new Tax Code and believes that tax reform is a very complex issue that needs more detailed examination.
The prime minister did not agree with the view that monopolies are always bad, stressing that all depends on the nature of monopolies, saying that formation of so-called natural monopolies in small markets with an active player is acceptable unlike monopolies built by the use of administrative resources. -0-