‘Silent Numbers’: The Deputy Presents Armenia's Economic Situation in Figures

The deputy from the ‘Hayastan’ faction of the National Assembly, Tadevos Avetisyan, has published an article titled ‘Silent Numbers: The Facts of January-August 2021 and the Promises for 2022.’

In comparison to the same period in 2020, the Economic Activity Index (EAI) for January-August 2021 shows an increase of 4.9%, whereas in Georgia it has risen by 12%, almost 2.5 times higher than that of Armenia. The growth in state budget revenues is recorded at 11%, while expenses of the state budget rose by 10.4%, resulting in a budget deficit increase of 6.1%. The benefits for the underprivileged, pensions, and minimum wages have remained unchanged, yet the average salary has increased by 6%. Consumer prices surged by 6.4% overall, and by 6.7% for the January-September period. Food prices have seen a rise of 9.3%, and 6.7% in the January-September timeframe.

Comparing September 2021 to September 2020, food prices have increased by 15.4%, vegetables by 64.5%, sunflower oil by 55.1%, and eggs by 27.4%.

In the second quarter of 2021, the monthly cost of the minimum consumer basket was 70,044 drams, while the minimum monthly wage was set at 68,000 drams and the average pension was around 40,000 drams, with the minimum pension amounting to 26,500 drams.

For January-August 2021, foreign direct investments showed a net inflow of $280 million, with foreign investments totaling a net inflow of $85.7 million. The national debt increased by 12% or $1 billion (approximately $8.953 billion as of August 31, 2021), and there was a 30% shortfall in capital expenditures of the state budget.

The projected state budget for 2022 includes total revenues of 1.946 trillion drams, marking a 29% increase (three times higher than the January-August 2021 figures), and tax revenues and state duties of 1.844 trillion drams reflecting a 28% increase. Total expenditures are expected to be 2.188 trillion drams, an 18.2% rise (1.8 times higher than the previous year’s January-August figures). Capital spending is projected to increase by 60.2% (following a 30% shortfall for January-August 2021), with a stated deficit of 242.2 billion drams, indicating a decrease of 29%. Benefits for the underprivileged are projected to remain unchanged, while the minimum pension and certain types of pensions are expected to rise by 7-8%. The minimum wage will remain unchanged, with a 25% reduction in the funding for public employment programs. The target for consumer price growth in 2022 is set at 5.5%, while it was 7% for 2021, with GDP growth projected at 7% for 2022 compared to 6.5% for 2021 (with a recorded 4.9% for January-August 2021).

A notable example of the social nature of the state budget: The average pension has seen a 32.3% increase compared to the previous year, and the minimum wage has risen 1.6 times.