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The results of the first two years of the membership of Armenia in the EAEU are summed up

The results of the first two years of the membership of Armenia in the EAEU are summed up

7/6/2017

Pros and cons the Republic of Armenia received from its entry into the Eurasian Economic Union (EAEU), its prospects and opportunities in the context of integration, as well as the development of digital technologies in the country were discussed on July 6 in Yerevan at the round table “Republic of Armenia: two years in the Eurasian Economic Union. First results”

The round table was attended by the Vice Prime Minister, the Minister of International Economic Integration and Reforms of the Republic of Armenia, Vache Gabrielyan, the Minister in charge of Integration and Macroeconomics of the EEC, Tatyana Valovaya, the Minister in charge of Internal Markets, Information Support, Information&Communication Technologies of the EEC, Karine Minasyan, Heads of public authorities of Armenia, representatives of the embassies of the Republic of Belarus, the Republic of Kazakhstan, the Russian Federation and the Czech Republic, the scientific and business community.

Welcoming the participants of the round table, Vache Gabrielyan said: "The past two years have shown that even in the presence of external economic shocks and negative trends in the region, exports of the Republic of Armenia have increased, prices for imported goods fell, and the balance of payments deficit declined. However, any final conclusion about the effects of the accession of Armenia to the EAEU would be premature." According to the Armenian Government representative, basic integration institutions are in the process of formation, and economic systems of the member countries haven't still found the best way of cooperation. But at the moment, a great potential of the integration association can be clearly seen.

At the session "The first results of the membership of the Republic of Armenia in EAEU”, Tatyana Valovaya described the effects of the country's accession to the Union, among which: leadership in terms of industrial development rates, increased growth of gross domestic product and supplies of Armenian products to the common market of the Union.

"Exports of the Republic of Armenia to the EAEU Member States grew by 53% in 2016,” the EEC Minister said. “The country is ranked first by the industrial production growth rate: in the past year, it was recorded at 6.7%.”

Growth of supplies from Armenia to third countries in 2016 was 13%, while the share of high-tech exports reached 12% of the total volume, with an average level of this indicator for the Union 8.8%. Exports of Armenian goods to the internal market of the EAEU in total exports increased from 15.9% to 22%.

Agricultural production in Armenia increased by 6.5%, enabling the country to ramp up supplies to the internal market of the Union in 2016. Compared with the figures of 2014, exports increased by 6% and amounted to 260.7 million US dollars. Supplies of fruits, alcoholic and non-alcoholic beverages grew the most.

Industrial production growth was recorded at 6.7%, and in the first quarter of 2017 the figure was 16.2% compared with the same period of the previous year.

Mutual trade volume for the first quarter of 2017 increased by 38.4 percent to 102.5 million US dollars, surpassing the level of 2014 by 49%, the level of 2015 by three times.

The Republic of Armenia has one of the dominant positions among the Member States in terms of GDP growth rates. Despite the fact that from 2014 until 2016 the GDP of the Republic was moderately restrained amid instability of the economic situation in the world, and in particular in the Russian Federation, already in the first quarter of 2017, as compared to the same period of the last year, the GDP increased by 6.5%.

In the session "Republic of Armenia and the EAEU: new opportunities and development prospects", held at the round table, one of the main topics was the digital transformation. Karine Minasyan, acting as a moderator of the session, noted its importance. "Those states that are not actively involved in the process of transformation in the coming years may lose their competitive edge," the EEC Minister believes. “Armenia has made a huge step in the development of information and communication technologies, the volume of the industry from 2010 has grown by 4.3 times. It is the best indicator in the country's economy. The number of IT companies operating in the global market has grown by 2.4 times since 2010 and amounts to more than 400.”

During the discussion it was noted that for Armenia the merge of the capabilities of the real sector and the IT sector, which is included in processes of the global digital transformation at the maximum extend, may become one of the main recipes for maintaining competitiveness and improving performance.  

According to Karine Minasyan, Armenia has significantly advanced in the use of modern technologies in agriculture. Since 2010, areas of greenhouses increased six times, a large part of them has high-tech equipment, which ensures high productivity.

Armenia has largely advanced in traceability of products throughout the space of the Union. Digital technologies make it possible to do the process of production and supply of products and services transparent, as a result, interaction between supervisory authorities and business is minimized.

The major conclusions, recommendations and proposals made during the round table are planned to be used in the preparation of the report “Republic of Armenia: two years in the Eurasian Economic Union. First results.” It will be submitted at the session of the Eurasian Intergovernmental Council at the end of the year.