This regular economic report records theeconomic activities of Armenia for the year 2013-2014. Adecline in construction contributed to a significantweakening of economic growth in Armenia in 2013. The declineof the construction sector offset a dynamic expansion ofindustry, agriculture and services. The volume ofmerchandise exports rose by 7.2 percent, and net remittancesexceeded 1.5 billion US dollars, a 15-percent increase over2012. For a third year in a row, the execution of publiccapital spending was lower than budgeted. Tax revenues werein line with the budget because of improved taxadministration, policy measures that expanded the tax base,and a one-off license fee paid by the fourth mobile phoneoperator.Armenia needs to further improve the businessenvironment and competitiveness, and facilitate FDI andexports to create well-paying jobs.Some employees objectedto the introduction of the new, funded pension system, andopposition parties appealed against some legal provisions incourt. The government’s medium-term reform agenda, supportedby the ongoing Development Policy Operation supported by theWorld Bank reflects the priorities. It includes criticalreforms to the business climate and public administrationaimed at strengthening competitiveness and increasing publicsector efficiency. These reforms are expected to create jobsby reducing the costs of doing business for firms, expandingaccess to credit to Small and medium enterprises (SMEs), andincreasing opportunities for employment and job creationthrough increased trade and connectivity. The publicadministration reforms, which aim to strengthen resourcemanagement and policy formulation, will also facilitate moreinclusive access to services as a result of more efficientuse of resources and a sounder policy formulation framework.The government plans to call a Consultative Group Meeting toseek donors’ support for upgrading the country’scompetitiveness and addressing the country’s job creation agenda.
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