World Bank forecasts economic growth in Europe and Central Asia

The near-term economic outlook remains especially uncertain, with risks to the baseline forecast tilted to the downside. These risks include an additional tightening of global financial conditions, financial turmoil, and worsening energy shortages.In the South Caucasus, growth in 2023 is projected to halve to 3.3 percent. The forecast deceleration reflects weakening momentum after the strong rebound in 2021-22, the slowdown in the euro area.

The highest economic growth – 10,8% for 2022 in Armenia among European and Central Asian countries. Regarding other regional countries, Azerbaijan’s 2022 growth is at 4,2%, Georgia’s at 10%, and Turkey’s at 4,7%.

New incentives for IT companies in Armenia

Armenia has made the IT sector a priority industry․ The system of granting tax incentives to IT startups first came into force in 2015 based on the law “On State Assistance to the Information Technology Sector”. It is designed to provide IT startups with tax breaks for the first years of their activity. Low rates set under the law are intended to provide motivated behavior for investment and reduce the risk of tax evasion. Tax break certificates are granted on a case-by-case basis by the Special Commission established by the Government.

Companies applying for a certificate must meet certain requirements, particularly:

  • They must be trade organizations or Private Entrepreneurs registered in the Republic of Armenia. The certificate cannot be applied to subsidiaries, economic associations, branch offices, or representatives of foreign legal entities.
  • The number of employees should not exceed 30
  • They shall not sell their fixed assets
  • At least 70% of turnover must derive from the types of activities defined above, etc.

In December 2022, amendments were made to the law, as a result of which the benefits program was extended:

✔️Certificate applications will be accepted until November 1, 2023.
✔️ Certificates issued up to and including December 31, 2018, are valid for a period of five years from the date of issuance.
✔️ Certificates issued after January 1, 2019, are valid until December 31, 2023, inclusive.
✔️ The possibility was made to establish other types of state support programs at the suggestion of the competent state body․

 

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