2009 will bring gloominess
Economic growth in the world is expected only in 2010. Before that, the world should "surmount" the year of 2009 which economists described as a year of repressions and hardships.
"During global economic crisis there are no winners or losers: people should struggle against the crisis with joint efforts," said Chief Adviser at the AVAG Solutions Company, ex Minister of Finance Levon Barkhudaryan during today's discussion entitled "Impact of the Global Economic Crisis on Armenia."
All participants of the seminar agreed that Armenia successfully resisted the first wave of the crisis, since our country was not very much integrated into international market. However, some processes, namely the decrease of the volume of transfers, the abrupt decline of metal prices on the world market, exerted a negative impact on Armenian economy.
The real ordeal is awaiting us this year.
After analysing and comparing the economic crisis in Armenia with that of other countries in the region, Masood Ahmed, Director of the Middle East and Central Asia Department of the International Monetary Fund, noted that Armenia is in a comparatively better state regardless of reductions in different spheres of economy.
According to a recent IMF survey, economic growth and the volume of world trade dropped abruptly at the end of 2008 and at the first quarter of 2009. The IMF foresees economic recession by 0,5-1 percent.
"This is the worst prediction the IMF has ever given since its foundation. The year of 2009 will be rather bleak for the world," said Mr. Masood Ahmed.
Arsen Ghazaryan, President of the Union of Armenian Manufacturers and Businessmen says one of the backlashes of the global crisis is that export is carried out by prepayment which undoubtedly hampers economic growth. The problems of home economy spring up by market expectations, especially in the sphere of subsistence production and construction.
Although we repeat that Armenia has a stable banking system, today we are in a closed disk. We have a problem of fast crediting. I cannot understand the drop in consumer credits. And what about supply-and-demand?" he said adding that to overcome the crisis faster we should review the Law on Investments and display political will.
