Former Central Bank Chairman: Armenia’s Economy Crippling

23.08.2010 21:49
Former Central Bank Chairman: Armenia’s Economy Crippling

YEREVAN, August 23. /ARKA/. Armenia’s economy is crippling, Bagrat Asatryan, director general of Garni Invest Universal Credit Organization and former chairman of the Central Bank of Armenia, said on Monday.

He thinks that the country has already reached the level that promises no further development is things remain unchanged.

Asatryan is convinced that the attraction of outside financial resources, which used to be sent to the construction sector as investments in recent year, no longer can produce effect and is not able to remedy the situation.

Speaking at a news conference on Monday, he said that money transfers grew eight or ten percent this year, compared with the previous year, while in 2008 they grew 25 to 30%.

The expert expects no such a money inflow in the nearest future.

That is why, as he said, substantial changes are needed.
In particular, he proposes transformation and diversification of the economy.

Speaking about economic growth, he said that “beautiful indicators” having nothing in common with the reality would be claimed this year.

Asatryan said that economic decline has already visible in the country – the country’s economy has grown 8.8% over five months of this year, 6.7% over six months and only 4% over seven months.

Taking into account the 7.5% year-on-year inflation in Jan-July 2010, he predicted deterioration of living standards.

He said this would strike hand at 70% of the country’s population.

National Statistical Service of Armenia says GDP grew 4% in Jan-July 2010, compared with the same period a year before, to AMD 1586.5 billion or $4.3 billion.

Year-on-year inflation was recorded at 7.4% in Jan-July 2010.
In the 2010 government budget, GDP growth is planned at 1.2% and inflation at 4±1.5%. --0--


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