Recuperation will be slow and incoherent
RA Prime Minister Tigran Sargsyan gives preference to the financial stability and according to him, Armenia refrained from further jolting in the economy.
During the international conference entitled "Impact of the Global Crisis on Armenia", the Prime Minister fully described and recapped the impact of the global crisis on Armenia and underscored that the Armenia can be mainly proud of its banking system, which is rather lucrative an resisted the crisis.
According to Sargsyan, the largest macroeconomic issue facing Armenia was the delay in construction rise and later the fall of indices. This had a negative impact on Armenia's economic development. Summing up the results of the past five months, it turned out that Armenia suffered a 16% economic downfall.
"We expect to see a greater downfall within the next couple of months and only by the end of the year will we see a rise," said Sargsyan.
Based on data in June, inflation has gone down and Armenia is currently in a zone of lower inflation.
According to the Prime Minister, the positive trend is that the credit/loan policy is currenly broadening and will have a positive impact on the GDP. The Prime Minister mentioned once again that the government has never had the intention to reduce government spending because reductions would have had a negative impact on the macroeconomy.
Director of the World Bank in the Caucasus region Asa Alam underscored that Armenia needs to keep the macroeconomy stable in order to get out of the crisis. But since there are no investments in the sphere of construction, he advised the government to find other means for investments. According to him, the fields aimed at support for the poor are suitable.
