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Political turmoil in Yerevan to negatively affect Armenian economy

3 May 2018 15:00 (UTC+04:00)
Political turmoil in Yerevan to negatively affect Armenian economy

By Rashid Shirinov

The protest in the streets of Yerevan and other cities of Armenia have been ongoing for almost three weeks now, and this cannot but cause huge problems to the country’s economy.

More than 100,000 people were taking to the streets on the most active days of the protest movement led by Nikol Pashinyan, an opposition leader claiming to higher position in the government. Many of them skip their work, while some people have even quitted their job. Given that Armenia is still in a constant economic crisis, the people’s refusal to work will soon lead to even worse situation of the country’s economy.

Uzbek economist Kuvvat Rashidov believes that the political turmoil in Yerevan will negatively affect the Armenian economy.

“The artificial inflation, huge corruption, endless outflow of the population, which have been observed in Armenia especially in the last ten years, leave no doubt that the economy of this poor country will steadily deteriorate,” the expert told Day.az on April 30.

While the latest Armenian authorities imitated a fight against corruption, the government itself was embezzling the money that the country borrowed from abroad. The funds were spent not on the well-being of the population but on the ruling regime’s own needs.

As for the emigration, the resident population of Armenia was 3,230,000 on January 1, 2008, but it dropped to 2,972,000 in the beginning of 2018. Thus, about 260,000 people left Armenia in the past 10 years, and the terrible socio-economic situation in the country is the main reason for this.

Rashidov noted that in conditions when the main industries and production enterprises are idle and old jobs are being closed instead of opening new ones, it is naive to speak about any growth in the Armenian economy.

The expert added that the Sargsyan regime made many efforts to ruin the country, to rob its citizens, thereby smoothly destroying the already weak economy of the country.

“Armenian economists have long sounded the alarm about the fact that Armenia is on the verge of a financial collapse, but the situation does not change. I think that the political crisis will seriously damage the socio-economic situation in the country,” the Uzbek economist noted.

He stressed that any riots and protests entail serious financial losses for any state, especially for such an economically backward country like Armenia.

“Armenia will face serious economic difficulties from which it will not be able to get out without the assistance of its patrons,” Rashidov mentioned.

Today the protests continue in Armenia, and the economy of the country is deteriorating at the same time. Many foreign investors have already withdrew their capital from the country, and if the political situation in Armenia is not normalized soon, the life of population in this country will further deteriorate.

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Rashid Shirinov is AzerNews’ staff journalist, follow him on Twitter: @RashidShirinov

Follow us on Twitter @AzerNewsAz

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