Three factors affecting Armenia's economy: Tigran Sargsyan

The most urgent issues Armenia is facing now are the ineffective situation in the governing system, curruption risks and shadow economy, Armenia's Prime Minister Tigran Sargsyan said at an interview with local Armenian media sources.

According to Sargsyan the Government does not avoid speaking about those issues and tries to find solutions to them.

Speaking about economic growth Sargsyan pointed to three factors that affect it.

Firstly, it is the situation in the world economy. Beginning from the last semester of 2009 some recovery trends could be seen in the world economy which positively affects Armenia's economy. Besides, the economic recovery in Russia also positively affects Armenia's economy.

"In so far as 120 enterprises with Russian capital are doing business in Armenia, naturally, their financial standing, their relations with their Russian colleagues have an essential impact on our economic system," said Sargsyan.

The second factor, according to him, were the bail-out steps taken by the Government.

"We knew that that policy would have its macro-economic impact on our GDP, and that is what happened," underlined he.

According to Tigran Sargsyan the third one is the intra-state factor, particularly, the behavioral rules of Armenian economic agents, their expectations, and the investment conduct, which in turn positively affect Armenia's economy for the last six months.

"We state that there is economic activity due to which we have levied about 35b AMD in taxes than planned. That is already a tangible achievement, which means that our macroeconomic stability it being sustained, and the state can implement all its liabilities."