There is a 'red line' below which the valuation of the dram will deal a painful blow to our economy, says Kherobyan

The ferry service will commence in August, with the schedule to be published in the coming days. Meanwhile, the throughput of Armenian goods at the Lars checkpoint increased by nearly 10 percent in July compared to the previous month. Regarding the sectors negatively impacted by the valuation of the dram, support is expected. This was stated by the Minister of Economy Vahan Kherobyan in an interview with Armenpress.

Speaking about the macroeconomic indicators for the first half of the year, the Minister noted that the recorded economic activity growth of 11.8 percent in six months is the best in the last 15 years. However, he cautioned that it would not be accurate to say that everything ahead is very bright, as both the whole world and especially our region are filled with challenges. In this regard, he emphasized that we should not weaken our efforts, but rather strengthen them to ensure that the recorded results are consolidated for the next quarters and years.

Commenting on the 5.5 percent decline in the agricultural sector during the first half of the year, Kherobyan addressed issues related to data collection and the absence of digital data. He stated, “I believe it does not reflect reality; we see that the export of agricultural products and production has indeed increased, which could not happen if agriculture had declined.” However, he assured that a new law on agriculture is being prepared aimed at better managing the sector.

Responding to concerns that the observed growth in the economy is short-term and that problems will arise if tourism flows cease and visitors return, Kherobyan stated, “We are confident that this growth and result are not short-term; rather, they are quite long-term. The potential that allows us to grow in the coming years is also increasing.” He highlighted the government’s aim to increase the productivity and thus the potential of Armenian businesses.

Kherobyan discussed ongoing issues related to the queues at the Upper Lars checkpoint. He mentioned that together with Russia’s Minister of Economic Development Maxim Reshetnikov, they have tried to find solutions on-site, agreeing that a second area should be allocated for customs clearance, which has been done. “In July, the throughput of Armenian goods increased by about 10 percent compared to June. This is less than we had planned, as we expected it to grow by at least 30 percent. I plan to share this data with my colleague. We have improvements in terms of queues, but not to the extent we had anticipated. Discussions and efforts in this regard continue,” the Minister reassured.

Regarding the launch of the ferry service, while it took more time, the Minister expressed confidence, stating, “I believe we will definitely launch it this month. It seems that all issues have been resolved. The only remaining issue is that we need to obtain online approvals for each type of product so we can transport any given cargo. Overall, we seem ready to publish the schedule, which will happen in the coming days.”

On the issue of dram valuation and the impact on certain sectors, Kherobyan acknowledged that it affects critical sectors, including investors, exporters, IT, and construction. “We realize that there is a 'red line' below which the appreciation of the dram would deal a painful blow to our economy. In our view, this red line is 450 drams for one dollar. We also see the concerns of the Ministry of Finance and are trying to find solutions that will mitigate the impact on our vulnerable sectors, allowing them to proceed profitably,” the Minister said.

Kherobyan assured that initial decisions in this direction have already been made, and there will be further decisions next week. Through these decisions and tools, they aim to provide companies with the necessary 'oxygen' to develop effectively in this new environment.