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EEU fails to help ill-conceived Armenian economy

12 January 2016 16:33 (UTC+04:00)
EEU fails to help ill-conceived Armenian economy

By Laman Sadigova

President Serzh Sargsyan, without having any remedy for the country, triumphantly announced two years ago that the country would enter the Eurasian Economic Union.

Now, in 2016, when the Armenian economy has no chance to be recovered and is not far from the bankruptcy, the country plunged into calculations about phantom benefits that the country earned from the EEU.

The government turned out incorrect enough in assuring the people about economic benefits and security that this union would offer to this poor nation of the South Caucasus.

The people in fact deeply indulged in dream in anticipation of the "economic miracle" after joining the EEU, but the miracle did not happen.

Soon, it became clear that the situation in the country is only getting worse. Now Armenian experts admit that crash of the country's economy will be inevitable in 2016 because of tough period in the Russian economy by force of western sanctions.

Armenia was full of expectations while entering the union. Indeed, no one could predict that Russia – the leading force in the Union – would face enormous economic difficulties itself.

Yerevan faced an unexpected failure in its aspiration to get a lion share in the Northern Giant's consumer market and what is the worst the amount of transfers from Russia plummeted by nearly 40 percent.

The statistical agency in Armenia reported that over the last 10 months of 2015 imports into the country declined by $850 million.

Moreover, this year the amount of foreign debt, which now stands at $5.12 billion, may exceed 50 percent of the GDP. The case becomes even worse because the government just wastes the money borrowed.

Armenia has the highest level of external debt in the region. The International Monetary Fund even predicted that it will reach 62 percent per capita in 2020.

Armenian people, driven to desperate situation, are fed up with the waste promises and lies of their government.

Nobody is interested in economic and political cooperation with Armenia, ruled by aggressive political regime. This post Soviet country is dragging a string of past errors and future delusions.

in this situation, nothing seems to help economically weak and politically aggressive Armenia -- the contracts would be meaningless and reforms useless.

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Follow Laman Sadigova on Twitter: @s_laman93

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