POSSIBLE ECONOMIC RECESSION IN U.S. TO HAVE IMPACT ON ARMENIA

Noyan Tapan
Jan 24, 2008

YEREVAN, JANUARY 24, NOYAN TAPAN. The anticipated economic recession
in the U.S. will have some impact on the Armenian economy as well,
the director of the Armenian-European Policy and Legal Advice Centre
(AEPLAC) Tigran Jrbashian stated at the January 24 press conference. In
his words, the possible consequences of this impact should be clearly
evaluated now in order to take steps aimed at their mitigation. He
said that the Central Bank of Armenia (CBA) has been conducting
dicussions and studies on this issue for four months.

According to T. Jrbashian, if the recession becomes reality
and continues long in the U.S, economic growth will slow down
worldwide. "We will have problems with prices of metals and raw
materials, which represents the second largest source of our economic
growth," he said. The possible recession in the U.S. may also affect
the amounts of remittances to Armenia.

"They will decrease and result in a change of our economic conditions,"
he remarked.

In the economist’s opinion, it is still early to speak about global
recession. However, in his words, "its phantom is moving, making a
serious influence on all markets". It has already begun to affect the
oil market: oil prices have fallen by about 4% in the last two years.