COUNTRIES WITH SMALL ECONOMIES SHOULD KEEP THEIR MAIN MACROECONOMIC INDICATORS ON A HIGH LEVEL – WB

/ARKA/
SEPTEMBER 25, 2009
YEREVAN

YEREVAN, September 26. /ARKA/. Countries with small economies should
keep their main macroeconomic indicators on a high level, as during
crisis starting conditions are important., said Asad Alam, WB Regional
Director for South Caucasus in the report "Impact of global crisis
on Armenia: short and long-term perspectives".

The report says that it is necessary to develop a system of macro-risk
regulation in Armenia as international fluctuations are natural in
the integrated world. Alam said that it is very important to be an
initiator in the development of anti-cyclic policy which will assist
in the creation of workplaces in a short period of time and increase
competitiveness in mid-term perspectives.

He also said that rehabilitation after crisis will be slow and long
for which it is necessary to make plans for mid-term period. "During
crisis external specifications and mid-term consolidation of the
budget is inevitable, that is why we should find "golden mean"
between funding and specification", says the report.

It is also necessary to develop efficient program on struggling against
poverty, as even under the conditions of proper management of state
finances struggle against poverty will have some regress. According
to Alam, small countries with open economies should increase
competitiveness and dive rsify the economy as there will be shortage
of external resources, especially in the post-crisis period.