Former Armenian Minister of Economy Vahan Kerobyan has reported a significant decline in the country’s IT sector. According to his statement on Facebook, the industry contracted by approximately 13% in the first half of this year.
Kerobyan attributes this decline to missed opportunities and unrealized initiatives. He reminded that as early as March 2022, the government was presented with a 32-point roadmap developed by a leading global consulting firm at the request of the Central Bank. This program was intended not only to preserve the sector’s achievements but also to create a favorable environment for attracting innovative entrepreneurs to Armenia. However, according to Kerobyan, not a single point of this program has been implemented.
The former minister also mentioned that more than a year ago, while he was still in office, a legislative initiative was introduced that could have prevented the current downturn and ensured the country’s competitiveness. However, this initiative was not adopted.
As a result, Kerobyan claims, many entrepreneurs who could have invested in Armenia chose neighboring Georgia, where the IT sector has been growing rapidly over the past two years.
Kerobyan expressed concern that the new package of measures currently being developed will also fail to ensure the country’s competitiveness. "This could lead to an exodus of not only international organizations but also Armenian IT companies," he believes.
Earlier, BMG reported that according to a National Bank report, Georgia's IT sector generated $784 million in revenue in 2023, which is 53% or $283 million more than in the same period in 2022.
Meanwhile, according to a study by the consulting firm Modex, Armenia’s IT sector turnover in 2023 amounted to 837 billion drams ($2.12 billion), which is 252 billion drams (over $630 million) or 43% more than in 2022. Additionally, about 87% or 755 billion drams ($1.91 billion) of the IT sector's turnover was realized in foreign markets (i.e., exported), while 13% or 114 billion drams was in the domestic market.
