IMF: ARMENIAN-TURKISH BORDER OPENING TO BECOME NEW IMPETUS TO ARMENIA’S ECONOMY

ARKA
September 9, 2009
YEREVAN

YEREVAN, September 10. /ARKA/. Armenian-Turkish border opening would
appear as new impetus to Armenia’s economy, IMF Resident Representative
in Armenia Nienke Oomes said Wednesday answering ARKA News Agency’s
question.

IMF is always hailing open borders and free trade, she said.

She said that Armenian agriculture sector would face temporary problem
of competition.

She also didn’t rule out some output reduction in industry sector.

Instead, other sectors will enjoy favorable impact from the border
opening, which will spur the country’s economy as a whole.

The IMF thinks that the opening will spur economic growth and drive
inflation rate down in Armenia, and growing competition will make
imports cheaper and transportation cheaper.

In particular, as Oomes said shipment by sea is quicker and cheaper.

Despite temporary difficulties that may appear in some sectors,
the border opening will propel Armenian economy in mid-term outlook.

Armenia’s trade turnover with Turkey shrank 28% in Jan-July 2009 to
$86.7 million.

Armenia’s exports to Turkey totaled $539.8 thousand (0.2% of Armenia’s
total export) after reducing 50.1% over the mentioned period of this
year, compared with the same period of the previous year.

Turkey-made goods worth $86.2 million have been brought to Armenia
over the period b etween January and July 2009 (27.8% year-on-year
reduction), while imports from Turkey’s territory totaled $76 million
(23.1% reduction) or 4.6% of Armenia’s import.

From: Emil Lazarian | Ararat NewsPress