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Social-Economic Problems In Armenia

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  • Social-Economic Problems In Armenia

    SOCIAL-ECONOMIC PROBLEMS IN ARMENIA

    Vestnik Kavkaza
    Aug 31 2012
    Russia

    According to official data, in the first half of the year Armenia,
    saw progress in several spheres of the economy. The correlation between
    export and import in favor of the second has always concerned political
    and expert circles. But now the authorities say about the 13% export
    growth, while import pace is 6.2%. The industrial and agricultural
    sectors of economy improved. The industrial growth was 13.4% in the
    period from January to June; the agricultural growth - 10.2%.

    Nevertheless, some important indexes do not correlate with the
    general socio-economic situation presented by the government. Economic
    activity is 7-8% in Armenia, but a price fall is seen at the market
    of houses. The socio-economic situation improves, but prices for
    apartments fall for unknown reasons. Moreover, the number of people
    who take mortgage loans increases. "It is difficult to find such
    imbalance - the economic growth and houses prices' fall - in any other
    country. It is nonsense, as improvement of the socio-economic situation
    leads to quick increase of prices for houses," the economic observer
    of the opposition newspaper Armenian Times, Aik Gevorkian, is sure.

    According to official data, in recent three years flat prices in
    Yerevan decreased gradually. In 2010 1 sq. m in Yerevan cost $719,
    this year the index is $638. But decrease of houses prices didn't
    lead to the growth of deals.

    Moreover, Armenia still hasn't settled such a painful economic issue
    as correlation of taxes and GDP. Taxes are only 17% of GDP, while in
    normal countries this index is at least 25%. The higher this index is,
    the less is the share of shadow economy. In Armenia the index doesn't
    grow, thus, the shadow economy doesn't reduce.

    The other worrying tendency is veiled. In the first half of the year
    the volume of electricity produced by TPP increased by 44%. The index
    is possible, but only from the first sight. The fact is that the
    volume of electricity produced by the hydroelectric station decreased
    by 12%. It is well-known that electricity produced by TPP costs more
    than electricity produced by the hydroelectric station. It means
    electricity prices will grow for population.

    The reasonable question is: if everything is so smooth, than why does
    the migration level grow, as well as the number of the poor? According
    to the migration service, 83760 people left Armenia in recent 7 months
    and they didn't come back. Last year the index was 78644 people.

    In 2010-2011 106 thousand people left Armenia. If the same migration
    pace continues, in 2010-2012 150 thousand people will leave Armenia.

    It is 5% of the population. The poverty level increased by 12%
    in comparison with 2008 in Armenia. The index is 35.8%. Therefore,
    all general socio-economic problems such as unemployment, migration,
    "shadow economics" growth, business monopolies are still unsettled.


    From: Baghdasarian
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