No Armageddon for Armenian economy in 2012

Vice president of the European Bank for Reconstruction and Development calls “not to succumb to panic” but be cautious with fiscal policy.

Economists’ apprehensions of the second wave of global recession are growing. The crisis that befell Europe is threatening while no perfect solution is found to overcome it. 2012 promises to be a hard year for the global economy. Italy, Portugal and other European states may have Greece’s fate. Politicians are searching for a way out; developments are unpredictable; markets are too sensitive.

PanARMENIAN.Net - Meanwhile, experts don’t predict Armageddon for the Armenian economy. According to specialists, both foreign and local, major impulse will come from Russia, which expects 4% growth next year.

If the current financial inflow is maintained, the volume of remittances in Armenia will reach pre-crisis level in 2012. However, taking into account the current situation, the Armenian national budget envisages a cautious economic growth of 4,2% against 4,6% expected in 2011. Besides, government takes efforts to ensure growth in agriculture and construction industry.

Vice president of the European Bank for Reconstruction and Development Jan Fischer calls “not to succumb to panic” but be cautious with fiscal policy. Among the advantages of the Armenian economy, he pointed out the healthy banking system, which managed to resist outer challenges. According to Fischer, Armenia has to continue the course of reform to improve the tax and customs administration and the business environment, what is important for attracting foreign investments.

Nevertheless, Bagrat Asatryan, former chairman of the Central Bank of Armenia (CBA), supposes that despite increase in pensions and social benefits, the quality of life of the Armenian population will worsen due to the global rise in prices.

Viktoria Araratyan / PanARMENIAN News
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