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RESULTS OF THE ECONOMIC CRISIS IN SOUTH CAUCASUS COUNTRIES
The Messenger Staff
June 22, 2011
Georgia
The Armenian organization Caucasus Institute printed an analytical
report where it assessed the situation in the South Caucasus during
and after the global economic crisis.
According to the report, Armenia faced a big setback during the crisis
as the major branch of its current economy construction business
failed. Before the crisis 27% of the country's economy was based on
the construction business but during the crisis real estate property
in Armenia was sold quickly and cheaply. This created an outflow of
foreign currency from the country, the local currency rate fell and
this influenced the country's economy very negatively. In addition
to this there was a decrease in exports from the country as well.
Georgia managed to come out of the crisis in much better condition.
This was mainly because of the result of the huge economic assistance
Georgia received after the Russian invasion of 2008. The country
received almost USD 5 bln including 1 bln as a grant. This money
protected the country from collapse.
Azerbaijan also did not suffer much from the crisis, even though the
oil prices went down as the country had enough reserves to maintain
its economy and as soon as oil price went up, Azerbaijan retained
its position.
The Messenger Staff
June 22, 2011
Georgia
The Armenian organization Caucasus Institute printed an analytical
report where it assessed the situation in the South Caucasus during
and after the global economic crisis.
According to the report, Armenia faced a big setback during the crisis
as the major branch of its current economy construction business
failed. Before the crisis 27% of the country's economy was based on
the construction business but during the crisis real estate property
in Armenia was sold quickly and cheaply. This created an outflow of
foreign currency from the country, the local currency rate fell and
this influenced the country's economy very negatively. In addition
to this there was a decrease in exports from the country as well.
Georgia managed to come out of the crisis in much better condition.
This was mainly because of the result of the huge economic assistance
Georgia received after the Russian invasion of 2008. The country
received almost USD 5 bln including 1 bln as a grant. This money
protected the country from collapse.
Azerbaijan also did not suffer much from the crisis, even though the
oil prices went down as the country had enough reserves to maintain
its economy and as soon as oil price went up, Azerbaijan retained
its position.