Transfers To Armenia To Decrease By $1-1,5 Bln, An Expert Thinks

TRANSFERS TO ARMENIA TO DECREASE BY $1-1,5 BLN, AN EXPERT THINKS

ArmInfo
2008-10-28 19:12:00

ArmInfo. The volume of foreign exchange sent to Armenia will decline
by $1- 1,5 bln, Pro-rector for development of university education
at Russian-Armenian (Slavonic) University, Doctor of Economics Edvard
Sandoyan said, Tuesday.

"Volumes of transfers and foreign investment in Armenia’s economy
may abruptly decline due to the financial crisis, the inflow of
foreign investment in mortgage business may also be suspended in
the short-term outlook. On the whole, Armenia’s economy will undergo
a certain downturn as a result of the financial crisis, but at the
same time, the potential of the republic’s economic system will be
consolidated due to export opportunities of the republic", he noted. He
also stressed that problems may arise in Armenian export due to drop
in international prices of copper and other mineral resources.

Meanwhile, the level of population’s solvency may fall as the state
of about 35% of Armenian citizens depends on transfers. "All these
factors together may lead to considerable slowdown of economic growth
in the country which has been a two-digit index since 2002 and made
up 13.7% in 2007, and for 2008 the GDP growth is targeted at 10%
", Sandoyan said in conclusion.

To note, according to the Central Bank of Armenia, $1035,3 mln funds
of non-commercial character were transferred for individuals through
the banking system of Armenia in Jan-Aug 2008.