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State revenues in Armenia vanishing

7 October 2015 15:33 (UTC+04:00)
State revenues in Armenia vanishing

By Laman Sadigova

State revenues in Armenia continue to decline, driven by the dynamics of internal volume of trade in the country.

The domestic turnover decreased by 5.4 percent in January-August 2015 compared to the same period of last year, according to the National Statistical Service.

The decline in the domestic trade began in January 2015, when the Armenian economy showed the first signs of recession. It mostly affected retail trade, falling roughly 6.8 percent, amounting to about 828.6 billion drams.

A decrease in the solvency of the population is also evidenced by imports, which show a clear downward trend from the beginning of the year. According to the NSS, the volume of imports to Armenia in January-August amounted to about $ 20,741 million, less than 26.3 percent compared to the same period in 2014.

This situation is caused by the deterioration of the economy in the country, mainly due to internal instability and external crises.

Experts are pessimistic about the solvency problem facing the population and not see any growth in the economy. According to economist Artak Manukyan, the economic situation will not change for the better till the end of 2015.

Local press reports that a future devaluation is predicted to bring the currency to 600 drams to the dollar. One of the reasons for such drastic declines is a result of the economic situation in Russia, which remains one of Armenia’s major trading partners.

The situation is also getting worse because of the blockade from neighboring countries that Armenia created by occupying 20 percent of Azerbaijan’s internationally recognized territories. By spending large amounts of money on military needs, this post-Soviet country completely destroyed its already weak economy.

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Follow Laman Sadigova on Twitter: @s_laman93

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