Low GDP diversification level increases vulnerability of RA economy

PanARMENIAN.Net - In crisis circumstances, Armenia’s GDP structure with 27% share in construction negatively affected Armenian economy, RA Prime Minister Tigran Sargsyan stated.

Presenting 2009 state budget fulfillment report, the Prime Minister noted 40% reduction of capital construction as a result of private transfers decrease and slackened interest in real estate. A slump in indirect taxes comprised 2 points, the Minister stated, citing the two components above as a reason behind 14,2% GDP decrease in 2009.

“Low GDP diversification level increases RA economy vulnerability. 20% decrease in indirect taxes in 2009 suggests the necessity to improve tax administration system to guarantee favorable business environment for the development of other spheres and provide equal competition terms,” Prime Minister stressed.