Azernews.Az

By Laman Sadigova

The World Bank and the International Monetary Fund have become pessimistic about the economy of Armenia, stating that the country will see weak or even negative economic growth in 2015.

The Armenian economy is suffering from a downturn, while a sharp devaluation of the national currency since 2014 is leading to an imminent inflation.

Armenia has no chance to overcome the stagnation on the backdrop of reduction of the Russian and foreign investment, the growth of public debt and the decline of the budget revenue. Armenia is expected to see state debt reaching 44.5 percent of the GDP.

Despite optimistic statements by the authorities on the bright future that awaits Armenia just around the corner, any sensible view on the situation evokes hopelessness.

The decline in remittances negatively affects the people’s standard of living, which is already in a deplorable situation. As a result, citizens are leaving Armenia in droves and migrants are increasing day by day.

It is worth noting that remittances account for 21 percent of Armenia's GDP, and in 2014 remittances from Russia decreased by 56 percent. It is to imagine Armenia after several years if things will continue to take this course.

As the crisis affects all spheres of the country, it also scares off investors, who are afraid to get "infected." Instability undoubtedly discourages big companies like "Ettihad Airways", "Samsung" and “France Telecom-Orange," which gave up on Armenia and plan to leave shortly.

Also, despite the fact that the U.S. and Armenia signed a framework agreement for trade and investments development, the low level of trade between the two countries questioned the economic benefits of the agreement.

Armenia, already locked alone in the region due to its aggressive policy toward neighboring countries, is seemingly entering an even worse situation. Now, this weak South Caucasian country is of interest neither for investments nor for cooperation. The country has become a victim of its own intrigues.

There are various reasons for the country's deplorable situation that can be named as main factors, but the one and only obvious reason is the government's unwise policy. The aggressive, directionless, corrupted government is destroying the country from the inside.

The Armenian people, desperately trying to fight against the current government, are failing over and over again. The authorities in this small and completely corrupt post-Soviet country do not cease to steal from the people. Corruption scandals are replaced by news about police brutality and criminality going on in the country.

Protests in the country, carried out from July 2015 against rising prices for electricity in Armenia reflect the increasing public frustration against the economic policy of the government.

The oligarchic structure of the country's economy and the low level of control will prevent any attempts to modernize and strengthen the economy.

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Follow Laman Sadigova on Twitter: @s_laman93

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