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ARMENIA'S GOVERNMENT PLANS TO PROVIDE 8-10% ANNUAL GDP GROWTH IN 2007-2012
ARKA News Agency, Armenia
June 26 2007
YEREVAN, June 26. /ARKA/. Armenia's Government plans to provide
8-10% annual GDP growth in 2007-2012, runs the action plan of the RA
Government submitted to the Parliament on Tuesday. The document said
that the growth will allow Armenia entering the group of countries
with average income by the end of 2009.
The Government attaches importance to the maintenance of macroeconomic
growth from the viewpoint of stable economic growth.
With this objective it is planned to continue tax and budgetary policy
in maintaining stable tempos of economic growth and macroeconomic
stability.
At the same time, according to the Government, the reliable and
predictable money and credit policy to be implemented by the Central
Bank of Armenia is an important precondition for economic development.
According to the program, the Government planned minimum 10% growth
of annual investments. The growth of urban employment is planned 10%
or 105ths positions. Such result is planned to be achieved by means
of encouraging investments and further development of business
and investment environment as well as simplification of business
procedures.
The annual growth of labor productivity is expected to make 7% in
the coming five years.
The Government intends to provide 27-30% correlation of investments
and GDP which will be enough to provide 8-10% GDP growth.
The necessary volume of capital investments is planed to be achieved
by private investments, in some cases on the basis of cooperation
between state and private sectors.
According to the program, the level of collection of state incomes
is expected to make 0.3-0.4pct from annual GDP.
The Government also planed annual increase in pensions, as a result
of which in 2012 the average pension will exceed the index of poverty
by 1.5 times.
Besides, it is envisaged to increase financing of social, healthcare
and culture sectors. According to the program, state expenditures of
the social maintenance and social insurance system will make 6.2%,
healthcare - 2.2%, education - 3.5% of the GDP.
The program points out that the Government treats 29.8% poverty level
rather high. Significant poverty reduction is considered as one of
the main objectives of the executive power. The document envisages
significant poverty reduction, as a result of which the index will
be lower than 11.2% in 2010 and the extreme poverty - less than 1.6%.
At that the total level of poverty should not exceed 6.4% in Yerevan,
15.1%, - in other cites, 12% - in rural areas. The extreme poverty
should not exceed 0.8% in Yerevan, 2.3% - in other cities - 2.3%
and rural areas - 1.7%.
Cooperating with all the sides interested, the Government will
continue the process of considering the Strategic program overcoming
poverty and in 2007 will approve the program for 2008-2015, treating
it as the most important element of the country's stable and safe
development.
ARKA News Agency, Armenia
June 26 2007
YEREVAN, June 26. /ARKA/. Armenia's Government plans to provide
8-10% annual GDP growth in 2007-2012, runs the action plan of the RA
Government submitted to the Parliament on Tuesday. The document said
that the growth will allow Armenia entering the group of countries
with average income by the end of 2009.
The Government attaches importance to the maintenance of macroeconomic
growth from the viewpoint of stable economic growth.
With this objective it is planned to continue tax and budgetary policy
in maintaining stable tempos of economic growth and macroeconomic
stability.
At the same time, according to the Government, the reliable and
predictable money and credit policy to be implemented by the Central
Bank of Armenia is an important precondition for economic development.
According to the program, the Government planned minimum 10% growth
of annual investments. The growth of urban employment is planned 10%
or 105ths positions. Such result is planned to be achieved by means
of encouraging investments and further development of business
and investment environment as well as simplification of business
procedures.
The annual growth of labor productivity is expected to make 7% in
the coming five years.
The Government intends to provide 27-30% correlation of investments
and GDP which will be enough to provide 8-10% GDP growth.
The necessary volume of capital investments is planed to be achieved
by private investments, in some cases on the basis of cooperation
between state and private sectors.
According to the program, the level of collection of state incomes
is expected to make 0.3-0.4pct from annual GDP.
The Government also planed annual increase in pensions, as a result
of which in 2012 the average pension will exceed the index of poverty
by 1.5 times.
Besides, it is envisaged to increase financing of social, healthcare
and culture sectors. According to the program, state expenditures of
the social maintenance and social insurance system will make 6.2%,
healthcare - 2.2%, education - 3.5% of the GDP.
The program points out that the Government treats 29.8% poverty level
rather high. Significant poverty reduction is considered as one of
the main objectives of the executive power. The document envisages
significant poverty reduction, as a result of which the index will
be lower than 11.2% in 2010 and the extreme poverty - less than 1.6%.
At that the total level of poverty should not exceed 6.4% in Yerevan,
15.1%, - in other cites, 12% - in rural areas. The extreme poverty
should not exceed 0.8% in Yerevan, 2.3% - in other cities - 2.3%
and rural areas - 1.7%.
Cooperating with all the sides interested, the Government will
continue the process of considering the Strategic program overcoming
poverty and in 2007 will approve the program for 2008-2015, treating
it as the most important element of the country's stable and safe
development.