Announcement

Collapse
No announcement yet.

High Inflation Rate And Foreign Debt Are Main Impediments To Armenia

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • High Inflation Rate And Foreign Debt Are Main Impediments To Armenia

    HIGH INFLATION RATE AND FOREIGN DEBT ARE MAIN IMPEDIMENTS TO ARMENIA'S ECONOMIC DEVELOPMENT, ANALYST

    Tert.am
    15:18 01.11.10

    As a result of the global economic recession, the total economic output
    in CIS countries made 7% in 2009, according to Nickolay Ivchenko,
    Head of ForexClub companies' information and analysis center.

    Analyses show that the country suffering maximum losses was Latvia
    while Kazakhstan easily overcame the crisis impact, he told journalists
    on Monday, adding that reduced transfers and imports from Russia were
    the main cause of Armenia's economic downfall.

    According to Mr Ivchenko, the main reasons leading to a downfall in
    Armenia's economy have been a reduction in private transfers from
    Russia and the reduction in scales of Armenia's exports.

    Analyses have also shown that high inflation rate and large amounts
    in foreign debt were the main impediment to the economic development
    in CIS states, including Armenia

    Michael Verdyan, analyst of "ForexClub" companies' group, said in
    turn, that Armenia's GDP fall, which made about 15% last year, was
    conditioned by the negative indices in construction (42.3 %) and trade
    (4%) sectors.

    Speaking about the current year's economic growth, the expert said
    it was accounted for by the positive indices in industry sector.

    By the end of 2010, Armenia's economic growth is expected to be 3.7
    per cent, which is lower than it was in the first half of the year.

    According to Andrey Dirgin, Head of the Analytic Department of
    ForexClub, Armenia's economy is not open and will remain so unless
    the land connection with Turkey is re-established.

    The foreign trade turnout between the two countries is carried out
    via transit routes, which leads to increased prices on products,
    he said, adding that compared to Georgia and Azerbaijan Armenia is
    overcoming the crisis impact more easily.




    From: A. Papazian
Working...
X