2009 picture bleak for Armenian economy, analysts say
The year 2009 was aggravating for Armenia economically, as the
world crisis plagued the country’s economy, according to the
Institute of International Finance (IIF).
Unemployment in the South Caucasus republic rose by a staggering 11%, and the country posted a 20% economic decline last year. The same challenges are expected in 2010, the IIF experts concluded.
They also noted that the Armenian economy is suffering from the "Dutch disease", as the country is fully dependent on the Russian economy. The "big sister" currently accounts for as much as 90% of Armenia’s imports and exports. The analysts therefore warned that if Moscow withdraws its economic assistance, the Armenian economy is doomed to a collapse.
The CIS Statistics Committee has confirmed that none of the economic sectors in Armenia posted growth in 2009. The Gross Domestic Product (GDP) projection was fulfilled by 81.6%, while that on industrial production – by 88.1%, agricultural output 97.5%, and investments in main capital 46.5%. Armenian imports and exports dwindled 30% and 47% respectively, and the country’s negative balance in these transactions amounted to $600 million in 2009.
A turnaround is not in store for the Armenian economy earlier than in 2015, analysts predict.*
Unemployment in the South Caucasus republic rose by a staggering 11%, and the country posted a 20% economic decline last year. The same challenges are expected in 2010, the IIF experts concluded.
They also noted that the Armenian economy is suffering from the "Dutch disease", as the country is fully dependent on the Russian economy. The "big sister" currently accounts for as much as 90% of Armenia’s imports and exports. The analysts therefore warned that if Moscow withdraws its economic assistance, the Armenian economy is doomed to a collapse.
The CIS Statistics Committee has confirmed that none of the economic sectors in Armenia posted growth in 2009. The Gross Domestic Product (GDP) projection was fulfilled by 81.6%, while that on industrial production – by 88.1%, agricultural output 97.5%, and investments in main capital 46.5%. Armenian imports and exports dwindled 30% and 47% respectively, and the country’s negative balance in these transactions amounted to $600 million in 2009.
A turnaround is not in store for the Armenian economy earlier than in 2015, analysts predict.*
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