Republic of Armenia: Selected Issues
IMF Staff Country Reports, June 5, 2019
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- Republic of Armenia: Selected Issues
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Bibliographic details
- Published: June 5, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498318570.002
Overview
- Publication type: IMF Staff Country Reports.
- Title: "Republic of Armenia: Selected Issues".
- Date: June 5, 2019.
- Purpose: To quantify the macroeconomic impact of the government’s reform agenda covering three broad areas: tax policy and pension; governance, government efficiency, and corruption; and labor market and competition.
- Core premise: Strengthening growth and competitiveness and addressing governance problems requires comprehensive reform efforts.
Major findings from the simulations and analysis
- The government’s tax policy reform can have a positive impact on output in the medium run if it is accompanied by supporting measures.
- A full implementation of the reform package would yield substantial benefits for the economy; in particular, it could increase real GDP by as much as 7 percent over the long run.
- Measures proposed to enhance corporate transparency include accounting and auditing reforms.
- A more systematic support program for small and medium-sized enterprises, along with labor market reforms, should also help alleviate unemployment difficulties.
- The new government has made it clear that fighting corruption and improving governance remain top priorities.
Policy implications and recommendations
- Implement comprehensive reforms across tax policy and pension, governance and anti-corruption, and labor market and competition to strengthen growth and competitiveness.
- Pair tax policy reform with supporting measures to ensure a positive medium-run output impact.
- Enhance corporate transparency through accounting and auditing reforms.
- Design and implement a systematic support program for small and medium-sized enterprises.
- Pursue labor market reforms to address unemployment difficulties.
- Maintain strong anti-corruption and governance-improvement initiatives as stated government priorities.
Content in this bundle
- Republic of Armenia: Selected Issues; IMF Country Report No. 19/155; May 3, 2019