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ARISTOMENE VAROUDAKIS: ARMENIAN ECONOMY UNABLE TO DEVOUR SO MUCH CEMENT
NEWS.am
15:05 / 12/17/2009
Undiversified economy based on two sectors, construction and industry,
is a high-risk economy, and the international economic crisis has
proved this, Aristomene Varoudakis, Head of the WB office in Yerevan,
told reporters on December 17.
He stressed that the future of Armenia's economy does not depend
on construction. The international economic crisis showed that the
Armenian economy was unable to "devour so much cement," Varoudakis
said, alluding to the fact that capital construction constitutes a
lion's share in the Armenian economy. In this context, he stressed
once more the need for economic diversification.
Varoudakis said that the year 2009 has been a most difficult one
for the Armenian economy, but the peak of the crisis is behind. He
forecasts a GDP decrease of 16-17 per cent, and an inflation rate
of 5.5%, by the end of this year. The crisis caused a 3% rise in the
poverty level, and, but for allowances, the figure would be 6%.
Varoudakis pointed out that stabilization is expected next year. The
expected rise in the international copper and molybdenum prices will
contribute to the process. Varoudakis pointed out an increase in the
industry's output this year as compared with last year. Despite the
lower volumes of capital construction, a higher number of real estate
businesses has recently been registered. However, economic growth in
Armenia will be slow - 1.5% GDP growth is expected next year.
Varoudakis expressed his satisfaction with the stability in Armenia's
banking system and a high capitalization level. As regards negative
factors, he pointed out 8% ineffective credits.
NEWS.am
15:05 / 12/17/2009
Undiversified economy based on two sectors, construction and industry,
is a high-risk economy, and the international economic crisis has
proved this, Aristomene Varoudakis, Head of the WB office in Yerevan,
told reporters on December 17.
He stressed that the future of Armenia's economy does not depend
on construction. The international economic crisis showed that the
Armenian economy was unable to "devour so much cement," Varoudakis
said, alluding to the fact that capital construction constitutes a
lion's share in the Armenian economy. In this context, he stressed
once more the need for economic diversification.
Varoudakis said that the year 2009 has been a most difficult one
for the Armenian economy, but the peak of the crisis is behind. He
forecasts a GDP decrease of 16-17 per cent, and an inflation rate
of 5.5%, by the end of this year. The crisis caused a 3% rise in the
poverty level, and, but for allowances, the figure would be 6%.
Varoudakis pointed out that stabilization is expected next year. The
expected rise in the international copper and molybdenum prices will
contribute to the process. Varoudakis pointed out an increase in the
industry's output this year as compared with last year. Despite the
lower volumes of capital construction, a higher number of real estate
businesses has recently been registered. However, economic growth in
Armenia will be slow - 1.5% GDP growth is expected next year.
Varoudakis expressed his satisfaction with the stability in Armenia's
banking system and a high capitalization level. As regards negative
factors, he pointed out 8% ineffective credits.