The expected economic affects of Armenia’s accession to the Customs Union

Hasmik Dilanyan
Public Radio of Armenia

Armenia’s accession to the Customs Union (CU) and the Single Economic Space (SES) will have a positive effect on its economy. This conclusion was suggested in a recent report entitled “Armenia and the Customs Union: Assessing the Economic Effect of Integration” published by Eurasian Development Bank’s (EDB) Center for Integration Studies. Economist Ashot Tavadyan, who headed the research group, met with reporters today to present the expectations from Armenia’s membership in the Customs Union.

He said it is the best choice for Armenia now as it provides conditions for the growth of the GDP and improvement of the trade balance.

According to him, Armenia will enjoy all the possibilities offered by the Customs Union, particularly with regard to direct investments in its infrastructure and production, a decrease in energy prices, as well as a better environment for Armenian labor migrants, which altogether could secure a 4 % additional GDP growth. 

Tavadyan said about $0.5 million will be invested in the North-South railway project, another $200 million will be spent on the roads.

Regarding Armenia’s relations with the EU, he said “Europe suggests goods, capital and services without the right to free movement.” “There are no such restrictions in case of the Customs Union,” the economist added.

Show More
Back to top button