AMERIABANK DEVELOPMENT DIRECTOR: ARMENIA’S 15.7% ECONOMIC DOWNTURN IS AN ESSENTIAL REASON FOR THINKING, AND THE WORLD WILL STILL FACE SERIOUS PROBLEMS

ArmInfo
2009-06-23 19:33:00

ArmInfo. Armenia’s 15.7% economic downturn in Jan-May is an essential
reason for thinking, and the world will still face serious problems,
Ameriabank Development Director Tigran Jrbashyan said. He added that
the main decline (56.1%) falls on construction, 10.5% decline falls
on industry, foreign trade turnover decreased by 33.7%. Jrbashyan
thinks that in such a situation the availability of rapid response
system is important, particularly, necessity arises to introduce
elements of trust management. He added that the improvement of the
situation in Russia will also have a positive effect on Armenia’s
economy. This will decrease the reduction of transfer rates to Armenia.

Speaking of the situation in international economy, the expert said
that the main financial indices for May and June vividly demonstrate
that today under crisis conditions the global economy is on the first
plateau. This is the result of injection of large funds in the global
financial system in 4 qt 2008 and I qt 2009. In this connection,
the situation has stabilized to some extent. However, as a result of
steps taken, the global economy response was weaker than expected.

In particular, the abrupt decline in international stock exchanges,
as well as the fall in oil prices show the ambiguousness of the
response. Jrbashyan thinks that despite certain phenomena which can
be perceived as a sign of restoration of world economy, the W-shaped
scenario is more admissible for further development of the crisis
than the L-shaped scenario.

He added that according to the latest data, unemployment level
in the USA has reached 9.7%, and inflation remains lower than 1%,
and according to June 22 statement of the press-secretary of the US
president, 10% unemployment will be fixed sooner than expected, and the
given tendency will still continue. Jrbashyan thinks that the current
situation shows that the world will still face serious problems.