ARMENIAN GOVERNMENT PRESENTS FINAL REPORT ON ANTI-CRISIS MEASURES
ARKA
June 15, 2009
YEREVAN, June 15. /ARKA/. The Armenian Government presented a final
report on anti-crisis measures.
According to the report, Armenia managed to survive the first negative
impact of the global financial and economic crisis due to efficient
financial supervision. As a result, high financial stability indices
were recorded. Another reason is the lack of hot money in the financial
segment of the Armenian economy.
The report also indicates weak ties with the sectors of international
financial markets that faced the first wave of the crisis (sub-prime
markets).
Specifically, there was no panic in the Armenian financial market,
banks and other financial institutions, nor the demand for liquidity
was keener.
Although the GDP growth target was not realized last year, 6.8% GDP
growth was recorded in Armenia, with the average growth in the CIS
being 5%.
According to the report, Armenia recorded higher economic growth than
Russia (5.6%) and Ukraine (2.1%).
Like other countries Armenia did not manage to avoid the crisis,
which mainly affected the real sector.
The main cause of the decline was a decrease in private transfers,
fall in the world prices for metals and raw materials as well as
decreased demand for Armenian products and services as a result of
the decreased world demand.
A decline on the global real estate market affected the interest=2
0in the Armenian market, which was accompanied by smaller investments
and finally resulted in stagnation of the construction sector, which
is the prime mover of economy.
Lower incomes of the population along with lower external demand
caused a decline in a number of economic sectors. In January-April,
2009, an economic decline of 10% was recorded in Armenia.
Inflation rates are lowest in Armenia as compared with the other CIS
member-countries, which made economic stability possible.
Specifically, 5.2% inflation was recorded in Armenia late last year
against an average inflation rate of 14.8% in the CIS.