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The government should understand whether wages are really low or whether people really don't want to work. Papoyan


RA Economy Minister Gevorg Papoyan writes on his Facebook page:

"There are two reasons why there is no production due to dram appreciation, the local producer is not interested in producing and they say that the salary is low, that's why we don't work. The government should understand whether wages are really low or whether people really don't want to work." Feedback:

In terms of the claim that "the manufacturer is not interested in producing as a result of dram appreciation", we should note that in January-December 2023, the volume of industrial production increased by 6.4%, and in January-September 2024, by 12.6%.
Moreover, in January-September 2024, 45.9% of industrial products were exported (compared to 39.0% in 2023).
At the same time, compared to January-December 2023, in January-September 2024, the dram strengthened by 4.2%, making 387.4 AMD for 1 US dollar. Therefore, it is not economically correct to claim that producers are not interested in producing as a result of dram appreciation.

Moreover, the assessment of the impact on production growth with only one factor (that is, dram appreciation) is not economically complete, because a number of other factors also affect production volumes, namely, changes in demand in foreign and domestic markets, reserve products, etc. .

As for the low salary, let's note that in January-September 2024 (280,256 AMD), the nominal increase of the average salary compared to the same period of 2023 was 6.6%.
At the same time, an increase was registered in almost all areas of economic activity (except for Administrative and auxiliary activities - 1.3%). Moreover, we should also note that the concept of "low salary" needs additional explanation. It is not clear, for example, in comparison with what magnitude of the salary, the low salary is indicated.

For example, even a salary of 1 million AMD can be considered low compared to a salary of 2 million AMD," he wrote.

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