CHAIRMAN OF UNION OF ARMENIAN COMMODITY PRODUCERS BLAMES DWINDLING MACROECONOMIC INDICES ON POOR HANDLING OF INVESTMENTS

ARKA
Nov 27, 2009

YEREVAN, November 27, /ARKA/. Chairman of the Union of Armenian
Commodity Producers, Vazgen Safarian, blamed today Armenia’s dwindling
macroeconomic indices on poor handling of investments.

According to the official figures of the country’s National Statistical
Service, Armenia’s GDP fell by 17.5% in January-October, 2009. The IMF
and World Bank have predicted a 12%-15% full-year economic contraction
for 2009, while the government says it will make 15%.

Speaking at a news conference Vazgen Safarian said the Union of
Commodity Producers had repeatedly asked the government to channel
a sizeable portion of the $500 million Russian stabilization loan
into boosting small and medium-sized businesses and the industrial
sector which would allow to retain industrial production rates and
preserve jobs, however the government directed a sizable part of the
loan to the construction sector, which despite the government support,
failed to get back on recovery track.

According to him, production of cement, construction stone and road
metal has slashed. He also said industrial export is expected to drop
by 40% from 2008 to $600-620 million.

According to the official figures, Armenian foreign trade in
January-October fell by 31% from a year before to 1.1 trillion Drams
of $3.2 billion. Exports plunged by 41% to $551.6 million and imports
fell by 28.5% to $2.7 billion.

According to Safarian, the government should implement radical economic
reforms and stimulate domestic production to help the economy out of
the crisis.