According to former prime minister, economic crisis in
Armenia is of structural nature
14-01-2009 21:00:00 | Armenia | Economy
YEREVAN, JANUARY 14, NOYAN TAPAN. The second stage of the
economic crisis to start in Armenia in March-April will result
in a sharp growth of the unemployment, the former prime minister
of Armenia, chairman of "Freedom" party Hrant Bagratian said at
the January 14 press conference. He also forecast a rise in the
exchange rate of the dollar, as well as problems in commercial
banks.
In his opinion, the Armenian crisis has no relation to the
world crisis and is a result of the disproportion in the
economy's structure. In Armenia, the crisis will be deeper and
last longer. He informed those present that according to
international experts, the dram's appreciation is the number one
problem in Armenia. H. Bagratian reminded that the Central Bank
of Armenia (CBA) has to control inflation. In order to rule out
a fall in the exchange rate of the Armenian dram, the CBA is now
using the government's reserve fund which is running short. The
economist considered as dangerous the fact that 40% of GDP
growth is ensured in the construction sector whose rates have
sharply declined.
In the words of H. Bagratian, the global crisis was caused
by a bubbling in the financial market rather than by mortgage
crediting. The U.S. economy actually amounts to 15 trillion
dollars, whereas the financial market - to 500 trillion dollars.
This situation formed as a result of recrediting, which is also
done in Armenia. He expressed an opinion that the endless
recrediting by Armenian banks may "blow up" at first commercial
banks, then other banks. The economist also forecast a third
stage of the crisis that will start in Armenia in the summer.