BAGRATYAN NOTES ECONOMIC BREAKDOWN IN ARMENIA

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[08:05 pm] 12 January, 2009

Today the world is seeking ways to overcome the global financial
crisis. Meantime the Armenian Government takes illogical steps doubling
the tax burden. Armenia’s ex Prime Minister Hrant Bagratyan tried to
give the answer to this question.

How will you assess the year of 2008 from the economic point of view?

According to the statistics, the fall of the Gross Domestic Product
(GDP) was 45 percent a month. It further went down in December,
2008. It should be noted that the output largely increased in the world
in November and December. While in Armenia we faced the opposite scene:
the gross agricultural product has decreased twice which means we
have returned to 1992. I wouldn’t say 1993-94 as those were fruitful
years with a strong government and multiple reforms. /Let us remind
that in 1992 the country had two PMs Gagik Harutyunyan and Khosrov
Harutyunyan/. The import has reduced by 40 percent whereas most
agreements on import are signed at the turn of a year. Practically,
if we used to have an import of one milliard drams, this year the
import has significantly curtailed if compared with that of 1996. I
would like everyone to know this bitter truth. The economy boosted
by Robert Kocharyan in ten years was destroyed in 2-3 months.

Will the global financial crisis affect Armenia’s economy?

It will, but very slightly. The economic crisis in Armenia partly
depends on the global one. Today we taste the fruits of the so-called
dram appreciation initiated by the Central Bank at the head of Tigran
Sargsyan. The import has been terminated which means today we cannot
produce goods and sell them overseas as they demand certain services
in return.