News - Projects boost the economy, but not enough for growth, says Manasaryan

In a recent analysis, Dr. Tatul Manasaryan, head of the 'Alternative' Research Center, detailed how notable projects such as the Amulsar mining development and an advanced AI data center could positively affect Armenia's economic landscape. However, he cautioned that these projects alone would not sustain a targeted 5% economic growth. Manasaryan explained that the effects of these initiatives are gradual and cannot independently secure long-term economic stability. Highlighting the findings, Manasaryan underscored the significance of not just investments, but also labor productivity boosts, expansion of export prospects, industrial technological modernization, and increased production with high value additions as essential components for achieving and maintaining a 5% growth rate. He views projections by Fitch regarding steady 5% growth for Armenia with skepticism, attributing his doubts to the current policies. Moreover, Manasaryan noted the difficulties posed by excessive reliance on consumption and temporary factors which undermine sustained growth. Instead, he advocated for balanced economic development strategies that foster a solid GDP structure, urging the Armenian government to maintain economic relations with Russia amid efforts to diversify trade links with the European Union and other countries. The economist critiqued the view that large-scale investments alone, such as the 'Trump Route' project, will suffice. He believes a strategic focus on sustainable and balanced economic infrastructure is necessary. He also commented on Armenia's external economic ties, suggesting the importance of maintaining a diplomatic equilibrium, even as Armenia seeks broader trade opportunities. Manasaryan's insights offer a comprehensive perspective on the structural imperatives needed for genuine economic resilience in Armenia, reflecting caution about overestimated forecasts and advocating calculated enhancements in economic policy.