We Have Started to Consume a Lot, but Produce Little: David Ananyan

What is the status of Armenia's economy and why is a new economic policy necessary? This was discussed by the former head of the State Revenue Committee, David Ananyan, on Facebook.

“In recent years, Armenia's economy may appear to be growing in numbers, but in substance, it is moving further away from the idea of a creative state. We have started to consume a lot but produce little. We import a lot but export little. We speak a lot about growth, but think little about what that growth relies upon.

Today, the engine of the economy is services, trade, and construction, while industry and agriculture are retreating. This provides short-term numbers but creates a vulnerable, import-dependent economy susceptible to external shocks in the long term.”

He noted that construction is concentrated in Yerevan, while the regions are emptying, with jobs and incomes remaining centralized. Chains that create production value are not forming, and economic growth is not turning into security, technological, or territorial stability.

“The fiscal system continues to operate as an expense accounting mechanism rather than a development tool. The tax burden is consumption-based, the budget lacks counter-cyclical protection, and state expenditures rarely favor production, investments, or exports. Investments are mainly short-term, concentrated in raw material, financial, or real estate sectors, and do not form an industrial or technological base. Knowledge-based, export-oriented investors are almost absent.

In external markets, Armenia acts not as a creator but as an intermediary link. Exports are primarily based on raw materials or re-exports, and the structure of markets is severely limited, with a significant dependency on one or two directions,” Ananyan stated in his post.