Economist says Armenia exhausted resources of growth
By Rashid Shirinov
Armenia ended 2016 with negative economic indicators. But it was expected as the country has exhausted its growth resources.
The remarks were made by Armenian economist Ashot Yeghiazaryan, as he summarized the results of 2016 for Armenia.
He added that since joining the Eurasian Economic Union in 2013, Armenia has been isolated from the common economic space, and exhausted the resources of growth in Eurasian area.
“The inflow of private transfers is at a minimum, not to mention the resources of growth and limitations. The evidence and proof of this is the zero level of GDP growth, significant reduction in foreign investment and capital outflow,” the expert said.
Yeghiazaryan stressed that soon Armenia will exhaust all possibilities to attract loans because its volume is approaching a dangerous level. “The problem is that this is not the end – there is no sign of improvement,” he added.
The economist is sure that the bad trends will continue in 2017, and the country will face serious economic threats due to the government’s failure to pursue own policy.
Head of the Armenian opposition Orinats Yerkir faction Heghine Bisharyan also commented on the economic situation in Armenia.
“2016 was a step back, we barrowed funds and received more than 30 credits to give the country a chance to breathe. 2017 will not be better – we enter the year with a huge load,” she said.
Reminding that during the last session for 2016, the Armenian Parliament approved three draft loan agreements in the amount of $180 million, she said that these money should cover the budget deficit. “This means that we as a nation are in a deep hole,” said Bisharyan.
Despite the promises from the government, she does not expect any major change. “I don't see prerequisites for major changes, or for the way out of the situation,” she said. “We will have to pay $115 billion a year from the budget for the repayment of external debt..”
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Rashid Shirinov is AzerNews’ staff journalist, follow him on Twitter: @RashidShirinov
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