The 2014 draft budget discussions launched at Armenia's National Assembly.
During the discussions, Prime Minister Tigran Sargsyan commented on internal and external reasons for slowing economy growth in Armenia, with global processes affecting the country's economy.
However, the official noted slow improvement in Armenia's business environment, with the country likely to make it to the top 20 of the World Bank Doing Business report. Currently Armenia is ranked 48th, with the sectors of administration, trade terms, tax burden, fulfillment of agreements rated low.
As the Prime Ministry noted, CBA’s increase of refinancing rate by 0,5 pct to reach 8,5% curbed the country's economic progress. He also reminded of planned minimal salary increase to AMD 70 thous.
IMF World Economic Outlook (WEO) forecasted a 4,6%; 4,8%; 5,5% economic growth in Armenia in the years 2013, 2014 and 2018 respectively, with decreasing economy linked to slower progress in agriculture over unfavorable weather conditions as well as soaring gas and electricity tariffs.
In April 2013, WEO predicted a 4,5% and 4,1% GDP increase in Armenia in 2013 and 2014 respectively.
Average monthly salary totaled AMD 150 130 in Armenia in September 2013 increasing by 5,8%, as compared with the same period in 2012.
As the RA National Statistical Service reported, 3,9% and 8,7% growth was recorded in salaries of budgetary and private organizations in September 2013 against 2012 results, totaling AMD 119 403 and AMD 183 997 respectively.
The 2013-2017 governmental program envisages annual salary increase to AMD 50 thous. in 2014, AMD 55 thous. in 2015, AMD 62,5 thous. in 2016, AMD 70 thous. in 2017.
According to amendments to the Law on minimum monthly salary, the minimum salary amount was increased by 30% to AMD 45 thous. which required allocation of additional budget funds to the amount of AMD 6 billion. The new salary system will be implemented in Armenia starting January 1, 2014 with AMD 50 billion in budgetary funds to be extended.
On August 28, President Serzh Sargsyan stated that in 2017, the minimal salary in Armenia will reach AMD 90 thous.
Nevertheless, according to World Bank data, 32,5% of Armenia’s population are beyond the poverty line. Armenia’s Finance Ministry put the poverty rate in 2012 at 33,1%, with a 1% drop forecasted in 2013.
