Armenia continues losing foreign investment
By Rashid Shirinov
One of the main reasons for the Armenian economy’s weakness is the fact that it has been suffering from lack of investment for many years and this problem is still actual.
The Zhoghovurd newspaper has recently learned from official sources of Armenia that the UK has significantly reduced investment in the country. Data by the National Statistical Service of Armenia shows that over the first nine months of 2017, direct investment from the UK amounted to $3.84 million, while in 2016 this figure was $67.13 million. Thus, it turns out that the UK has reduced its investments by more than $63 million.
This is a clear indicator of the withdrawal of British investment from the Armenian market.
Armenian economist Tatul Manasaryan earlier told journalists that foreign investments in Armenia are politicized. “Those countries that have specific political interest in Armenia, make investments in the country,” he said.
He noted that as of the middle of 2017, the largest foreign direct investments to Armenia were registered from the Bailiwick of Jersey (UK), Russia, Germany, Cyprus and Lebanon.
As for the annual figures on the foreign direct investment net inflows to the real sector of Armenia’s economy, since they have not yet been calculated for 2017, the National Statistical Service provides data for 2016. The figure amounted to about $169.7 million against $246.3 in 2015.
Thus, despite the Armenian government’s constant search of investors, the country keeps losing foreign direct investments. The state of the Armenian economy is already sad, and therefore foreign countries and business people fear investing their money in it.
Most of Armenian entrepreneurs themselves do not venture to open a business in the country. Many local businesses withdraw their capital out of local banks, thus proving that even the Armenian business feels bad in the country. The Armenian economy almost does not develop, and foreign investors are just unwilling to invest in a pre-failed project.
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Rashid Shirinov is AzerNews’ staff journalist, follow him on Twitter: @RashidShirinov
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