Armenia is unveiling a comprehensive strategy to bolster its economy, with Finance Minister Vahe Hovhannisyan revealing a substantial support package for key sectors in an exclusive interview with BMG.
Minister Hovhannisyan disclosed that Armenia has allocated significant resources to promote intensive agriculture, with over 40 billion drams (more than $100 million) invested in the sector in 2023. This investment has already yielded tangible results, as evidenced by the notable increase in the volume of intensive orchards.
Furthermore, Armenia is prioritizing the development of its IT sector, recognizing the global competition for top talent. Minister Hovhannisyan expressed intentions to introduce a new support package for the IT industry, aimed at attracting global IT companies to establish a presence in Armenia and fostering an environment conducive to their growth.
In addition to supporting agriculture and IT, Armenia is actively facilitating the modernization of businesses. Minister Hovhannisyan outlined various support measures, including subsidies for leasing interest rates for businesses investing in new technologies and incentives for IT procurement to enhance productivity and efficiency.
Highlighting Armenia's commitment to long-term economic growth, Minister Hovhannisyan announced the extension of support packages for IT sector beyond 2023, with plans for a more comprehensive, enduring package post-2025.
“In fact, we have extended the support package that was in place until December 2023 for an additional year. Our aim is to create a more long-term support package after 2025. Currently, we are in the process of designing this package, which will include very generous benefits for research and development, as well as education investments. The current package is assisting startups by reducing their income tax rates and providing tax reductions to companies that have relocated from Russia or other countries to Armenia in recent years”, - the minister said.
Earlier, BMG reported that the turnover of Armenia's IT sector in 2023 amounted to 837 billion drams ($2.12 billion), which is 252 billion drams (over $630 million) or 43% more than in 2022. Approximately 87%, or 755 billion drams ($1.91 billion), of the IT sector's turnover was realized in external markets (i.e., exported), while 13%, or 114 billion drams, was in the domestic market.
