WB: ARMENIAN ECONOMY MAY BE INFLUENCED BY CRISIS DUE TO REDUCTION IN EXTERNAL DEMAND FOR EXPORTED GOODS

ARKA
Jan 28, 2009

YEREVAN, January 28. /ARKA/. Real sector of Armenian economy may be
influenced by the crisis due to reduction in external demand for the
goods exported from the country, WB Vice-President for Europe and
Central Asia Shigeo Katsu told journalists Tuesday.

Katsu agreed with the Armenian Premier Tigran Sargsyan that the
country’s financial sector has not suffered from the crisis as the
crisis effects on the real economic sector has just started.

The impact of the crisis of the real economic sector has been already
felt due to reduction in external demand and prices particularly in
mining industry that is important to Armenia, Katsu said.

Katsu stressed that Armenia will feel the crisis effects particularly
in remittances also because it has large Diaspora and many labor
migrants outside the country.

According to the WB representative, the only way is to wait until
the international demand grows, which is unavoidable.

Katsu expressed hope that implementation of various economic programs
on stimulation of economy in major countries will also help mitigate
the crisis effects on social systems.

Katsu reported that the World Bank intends to implement a number of
programs to ease the crisis consequences in short term, particularly
in the fields of employment in construction in summer-autumn period
and socia l security.

The budget receipts may suffer from the crisis and the bank is planning
to continue its assistance on poverty reduction issues, he said.

WB Vice-President also pointed out that the long-term problems should
not be ignored in considering short-term and mid-term tasks and the
country should be ready to return to normal life immediately after
the crisis is over.

From: Emil Lazarian | Ararat NewsPress