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World Crisis Has Also Positive Consequences For Some Armenian Compan

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  • World Crisis Has Also Positive Consequences For Some Armenian Compan

    WORLD CRISIS HAS ALSO POSITIVE CONSEQUENCES FOR SOME ARMENIAN COMPANIES

    Noyan Tapan
    May 8, 2009

    YEREVAN, MAY 8, NOYAN TAPAN. Nearly 90% Armenian businessmen said that
    the crisis has already had an impact on their company's activity and
    only 5% think that it will have no impact at all. Manuk Hergnian, the
    Chairman of the Economy and Values Research Center, reported at a May
    6 press conference presenting the results of the study Situational
    Estimation of Economic Crisis Impact on Armenia's Economy. In his
    words, nearly 80% responded entrepreneurs expect crisis deepening
    in 2009.

    According to the study results, over 70% enterprises had problems
    mainly regarding reduction of sale volumes, delay of payments or their
    non-fulfillment and 30-45% had difficulties in involving finances. M.

    Hergnian said that as means to resist the crisis the most part of
    enterprises is going to reduce administrative expenditures and to
    delay implementation of investments.

    40% responded companies plan to reduce the number of employees,
    at that, most reductions will be done at small and medium-sized
    enterprises.

    Reduction of salaries is expected at 20% companies, especially at
    industrial companies.

    According to center director's observation, the crisis had also
    positive consequences for some companies, especially from point of
    view of weakening of competitors' positions, fall in prices for raw
    materials and equipment.

    According to M. Hergnian, among economic branches the biggest fall
    was recorded in the spheres of energy, mining, and construction. Rates
    of food industry growth have been kept almost unchanged.

    60 small and big companies operating in Armenia took part in the
    survey held in March-April. Study results details can be found at
    center's website, www.ev.am.
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