Gross Domestic Product in Armenia will grow per capita to $4,604 by the end of 2019, Atom Jajughazyan, acting finance minister, said while presenting the 2019 draft government budget to the parliamentary committees.
In his words, the per capita GDP stood at $420 in 1995. It grew to $3,512 in 2015 and reached $4,280 in 2018. “This is not the best indicator and it is necessary to make efforts for its growth, all the more so its segments are not equal, especially taking into account the poverty rate,” he said. “It can’t be said that we are satisfied with the result that we will strain after higher indicators.”
Janjughazyan said that the draft government budget for 2019 has three key peculiarities – application of new tax and budgetary rules, program format and inclusion of out-of-budget financial resources.
He said that certain risks for Armenia are still present as the global economy growth pace is stabilizing. The risks are present also because prices at raw material markets, especially mining industry, are going down and the oil price is downed. This will strike at Armenia’s trade partners, including Russia and EU countries.
Speaking about GDP growth, Janjughazyan said that economic growth in the 2019 draft budget is projected at 4.9% against the 4.5 percent projected in the 2018 government budget. He said the GDP growth in 2018 will exceed the budget projected indicator reaching 4.9 to 5.9%, but it will not reach the forecasted 6 to 6.5% because of things in agriculture.
Presenting the key indicators of the 2019 draft budget, the acting finance minister said that the budget revenue is projected at AMD 1.5 trillion, spending at AMD 1.6 trillion and deficit at around AMD 150 billion.
According to the draft budget, capital spending will grow in 2019 to 3% of GDP from the 2.3% expected in 2018.