The government plans to record 4.5% economic growth in 2018. Vardan Aramyan, minister of Finance has repeatedly stated this during various meetings and today reaffirmed during the preliminary discussion of the draft law "On the RA State Budget for 2018" at the parliament.

In an interview with the Aysor.am Hayk Sargsyan, dean of the YSU Faculty of Economics and Management marked that the forecasted economic growth is realistic.

"The economic growth of 4.5% is a realistic assessment, especially when it is sounded by the government, as the government is trying to be as careful as possible when publishing such results, with the expectation that it is not less than the predetermined limit.

But I think that potential opportunities are much greater, if, of course, consistency will be displayed in that part of economic policy which is created today in Armenia and the benefits available is fully implemented, " mentioned Hayk Sargsyan.

- You said you that the potential opportunities are great. What is the basis of such optimism, taking into account the fact that the prime minister says that the foundations of economic growth are sufficient to claim for long-term economic growth?

- In this regard I have my own, I would not say the original, but the common position adopted today, which is to fix the democratic norms in the sphere of economy, to have operation of institutions. If the institutions operate poorly, it will be difficult. In particular, the Public Services Regulatory Commission, the State Commission for the Protection of Economic Competition, these institutes should work very well, which will create sufficient conditions for ensuring sufficient investment.

- If will be changes in the living standards of the citizens in the case of the expected 4.5% economic growth?

- I think that under conditions of this growth, the population will not yet experience tangible changes; they will gradually be if we have consistent development over the years, with at least not less than 5-6 per cent of GDP result. We will have these results if we take into account that this policy should be aimed at mitigating income polarization because today there is a situation where we have a strong polarization of income, which cannot be favorable for the broader layers of the society. Finally, the growth can be tangible if the wages, the real incomes increase, in conditions of low inflation, wages and pensions will be increased. However, these opportunities have not yet been recorded in the budget of this year.

- Minister of Finance Vardan Aramyan announced that the foreign debt will reach to 6.7 billion at the end of the year. Do not you consider debt increase as troublesome?

- No, it is not a concern. Having a debt is common in the world; all countries are in debt trenches. It is very important that the debt is used effectively. In the coming years, by increasing the absolute number, we will have a reduction in the debt burden, which is a good sign for later relieving that burden.

-So, can we say that the budget of 2018 is realistic, and in the event of external turbulences there will be no shock in the country?

- There are no concerns, but according to the budget results we cannot expect a substantial increase in the welfare level both in the current year and in the coming year.