Friday, April 8 2016 18:45
Alina Hovhannisyan

Expert: Armenia should solve its problems itself

Expert: Armenia should solve its problems itself

ArmInfo. Taking into account the recent developments in Nagorno- Karabakh, Armenia has faced geopolitical and geo-economic problems, which it should solve by itself, using all its economic potential without attracting partners' support; economist Vilen Khachatryan expressed this opinion at a press-conference on April 8.

The expert does not exclude that the economic activity in the country will reduce as a result of military conflict in Nagorno-Karabakh, and this drop will be caused by additional expenses on military equipment, reducing tourism flow and loss of human resources. In current situation Khachatryan sees the only solution in consolidation and implying of new directions in economic policy frameworks, which will help to overcome possible upcoming risks.

According to the expert this issue should be approached more orderly and reasonably. "I don't want to give negative forecasts for GDP but most likely there will be no growth. Armenia's expenditures on supporting Nagorno-Karabakh have already totaled 16-17 mln USD. And this amid 300-330 mln USD growth at year- end 2015 and the country's debt prevailing over the growth indicator 2-fold", he noted.  According to him Azerbaijan's current GDP is around 63 bln USD, while the amount of our GDP is 6-fold less, and due to this Azerbaijan has more opportunities to increase its strategic expenses.

Answering to ArmInfo's question the economist stated that the situation in Nagorno-Karabakh will have also negative impact on the country's ranking. However, he thinks that this issue is not of a special importance at the moment, taking into account more serious problems, which Armenia is facing today because of escalation of the Nagorno-Karabakh conflict.

To recall, according to IMF latest forecast Armenia's economic growth will total 2.25-2.5% in 2016. World Bank forecasts a 2.5% GDP growth for Armenia in 2016.  EBRD forecasts economic growth to 2% in 2016.  The Central Bank of Armenia has revised its economic growth forecast for Armenia in 2016 from the previous 3.2- 3.9% to 1.6-2.7%, according to the CBA's monetary policy program for Q4 2015. The state budget of Armenia fixed 2.2% GDP growth in 2016. According to the National Statistical Service of Armenia GDP growth in Armenia in 2015 totaled 3% versus 3.5% in 2014. 

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