YEREVAN, May 12. /ARKA/. A two-digit economic decline is still a threat to the Armenian economy, ex-head of Armenia’s central bank Bagrat Asatryan said in his interview to Zhamanak (Time) newspaper.

Despite the economic activity growth, deep problems will affect both the economic growth and the economic activity rates, he said.

Another factor that may lead to a two-digit decline is the 50% reduction in remittances as of the end of the quarter, the economist said, as cited by Zhamanak.

Investment data remain to be released, but they will point to a decline as well, according to the expert.

Such decline will indicate a substantial decrease in demand, Bagratyan said.

According to the newspaper, Armenia’s foreign trade volumes dropped by more than 20%, imports fell by 30.5% and exports declined by about 23%. At the same time, economic activity rose by 2.5% and a negligible increase is recorded in services’ sector.

Asatryan said reduction of the foreign trade turnover and of the imports by 30.5% in particular, was well predictable, but such a decline in exports could not be foreseen (10-15% reduction was projected in the beginning of the year).

Imports decline will, not doubt, affect the trade, services and other areas, he said.

The trends are not that strong right now, but the final picture may be far from being impressive, the ex-head of the central bank said, as cited by the newspaper. –0--