Armenia’s agriculture needs subsidies

PanARMENIAN.Net - Financial counselor of the RA NA Speaker, Doctor of Economics Tatul Manaseryan said that there are contradictory trends in Armenia’s economy.

Some activation is observed, but it is related to high prices for raw materials (for example, copper and molybdenum) in the global markets rather than to the efficient usage of internal resources, Manaseryan told a press conference in Yerevan.

“Some growth was recorded in industry with respect to it. The activation in the mining industry resulted in 17% growth in the energy field. Unfortunately, a considerable drop was recorded in agriculture, what has had a negative impact on recovery of the country’s economy,” he said.

Manaseryan added that 11% growth is envisaged in agriculture next year. However, taking into consideration the decline in 2010, the expert refrained from labeling it as a growth. “Almost 50% of the country’s labor force is employed in agriculture, but its share in the GDP makes 20%, what is a sign of inefficient policy in the field,” said Manaseryan, adding that the field of agriculture cannot exist without subsidies in any developed country. However, according to him, Armenia is unable to provide huge subsidies to the field.