Armenians and a long list of broken, failed promises

By Azernews

By Rashid Shirinov

Armenian PM Karen Karapetyan’s optimistic promises and speech idealisms fall short of reality.

All the promises including developing bigger projects, ensuring economic growth and eliminating corruption had gone in vain during his year in office.

None of Karapetyan’s biggest promises as the prime minister have been kept, while Armenians are especially disappointed because of the failed investment boom, which the PM repeatedly promised.

Samvel Karapetyan – an Armenian businessman living in Russia and brother of Karen Karapetyan – was supposed to be one of the main investors into the Armenian economy. However, following the tensions between the brothers, Samvel gave up the idea of large investment programs into the country, Armenian Zhoghovurd newspaper states.

Thus, instead of enjoying boom in investments, Armenia has to survive and maintain its poor economy by other ways that have long been running out.

Foreign investments in Armenia sharply decreased in the first half of 2017 compared to the same period of 2016. The National Statistical Service reported that investments in the real sector of the Armenian economy in January-June made less than $52 million, including direct investments that equaled $36 million.

The outflow of investment was $19 million, while direct investments decreased by almost $2.5 million.

Investments from Russia also showed a negative index – -$53.8 million, and direct investments decreased by $13.8 million.

Experts remind that attracting investment was the main election pledge of the ruling party. However, it failed to keep the word making Armenia more dependent on foreign donors.

Armenian experts and economists have long ago warned that it is necessary to ensure at least 7-8 percent of GDP growth to avert the impending default. However, the realities show that the country’s government couldn’t even reach the promised 2 percent of growth, as it stood at only 0.2 percent in 2016.

The economy of the country remains critical, demonstrating unbelievably low indexes every year. Descending economy, high poverty and increasing outflow of people are the pure realities in Armenia.

The Sargsyan government seems to have bitten off more than it could chew.