High but disturbing economic growth [Armenia]

Economic Growth: Purely quantitative indicator

Armenia has recorded an unprecedented economic growth, and World Bank experts have even dubbed Armenia a “Caucasian Tiger”. It seems that Armenian society should have been rather proud with this achievement. However, today, independent economists express their anxiety in whispers and talk of potential risks. There are symptoms that are more cogent than the purely quantitative indicator called “economic growth”. The issue here is not the fact that Azerbaijan is the first in terms of pace of economic growth and surpasses Armenia a number of times over. Independent economists are least interested in political populism.

Today we have good quantitative results in terms of GDP growth, and it is high time we start worrying about the qualitative aspect of this growth. Azerbaijan, Armenia, Turkmenistan and China are countries that have surprised the world with their economic growth in the past five years. If the economic growth in Azerbaijan and Turkmenistan is conditional on their natural resources, a similar comparison between Armenia and China does reveal much in favour of Armenia. Armenia’s economic growth does not possess the qualitative features China's does. Factors accounting for the economic growth of Armenia do not target spheres and directions which would ensure a high level of competitiveness for the country in the context of international economy. On the contrary, the current economic growth of Armenia is weakening the country’s competitiveness.