Finance Minister: Armenia's IT output decreased in first half of the year
YEREVAN, October 28. /ARKA/. Armenian Finance Minister Vahe Hovhannisyan reported that the output of the IT sector decreased in the first half of 2024 compared to the same period last year.
“However, over the past few months, we have seen stabilization trends in salary indicators and the number of employees in the sector. We hope that next year, as a result of the decisions and assistance programs we have implemented, we will achieve significant growth in this sector,” he noted on Monday during discussions of the draft state budget for 2025.
The minister stated that growth is also expected to be achieved through new investments.
In August of this year, former Armenian Minister of Economy Vahan Qerobyan stated that the IT sector had contracted by 13% in the first half of the year, attributing the decline primarily to the loss of existing opportunities.
Government Support for the IT Sector in Armenia
Approximately 50,000 people are employed in Armenia's IT sector. As of the end of 2023, the sector's turnover exceeded 640 billion drams (nearly $1.6 billion), accounting for over 7% of the republic's GDP.
In December 2023, the Armenian parliament extended tax breaks for IT startups for another year (until the end of 2024), allowing them to maintain an income tax rate of 10%, compared to 20% for other sectors.
In April 2024, Armenian Prime Minister Nikol Pashinyan stated in an interview with Egemen Qazaqstan and Kazakhstanskaya Pravda that the IT sector is experiencing steady annual growth of 20%, making it one of the country's most dynamically developing industries.
In May 2024, the Armenian government allocated 7 billion drams in financial assistance to IT companies for 2024-2025. In October, the government approved a large-scale, seven-year state support program for the IT sector. According to Mkhitar Hayrapetyan, Minister of High-Tech Industry, the goal is for Armenia to transition from a country providing services to one offering finished products. -0-