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Armenia heading toward its ruin

28 March 2015 15:57 (UTC+04:00)
Armenia heading toward its ruin

By Mushvig Mehdiyev

Armenia's current economic situation has draws much criticism of late as the government’s inactivity before the degradation of living conditions and other aspects of life in Armenia has been seen as irresponsible.

Armenia's former Prime Minister, MP Hrant Bagratyan, has joined in the chorus of criticism as he lent his voice against the regime, slamming the government for allowing the country’s economy to collapse.

He called on the authorities to immediately take all the necessary steps to prevent any further economic degradation and erosion.

"We are now heading towards our ruin. The republic is being extinguished," Bagratyan said.

His ardent critic along with other opposition MPs came up during a debate in the light of the actions of Armenia's State Commission for the Protection of Economic Competition, which the MPs blame for being an actor in today's economic hassle.

Looking into SCPEC President, Artak Shaboyan's activity so far, Bagratyan said, “Armenia has been sitting on a $10 billion GDP for the last ten years and that's mainly because of the incumbent regime and officers like Shaboyan.”

The current economic atmosphere in Armenia is viewed as reminiscent of 2009 crisis as the gross domestic product in this former Soviet country grew by 3.4 percent in 2014, disproving the expected target announced by government earlier last year.

Calling the government's forecast "unrealistic", World Bank excluded any considerable breakthrough in Armenia's economy amid the ongoing slowdown.

Bagratyan called for punitive measures against those who are responsible for Armenia’s dire economic situation.

According to local experts, including Artak Manukyan, Armenia's economy is observing a free fall, characterized by year-on-year worsening life conditions. Social indicators in 2013 were more positive than in 2014. Experts believe that 2015 and 2016 will see a worsening of all social indicators.

Armenia sits third in terms of both its GDP per capita and economic growth rates among all South Caucasus countries, explained local economist Aram Manukyan.

He claimed that rulers in Yeravan have shown a great reluctance when it comes to taking the necessary steps to salvage Armenia’s economy.

Based on the current economic stagnation, Armenia got bad mark also from Fitch and Moody's, as bot downgraded their outlooks for the former Soviet nation's economic growth. The European Bank for Development and Reconstruction has even zeroed out its forecast on economy for Armenia in 2015.

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Follow Mushvig Mehdiyev on Twitter: @Mushviggo

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