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State policy promises no growth for Armenian economy

24 November 2015 [10:07] - TODAY.AZ

/By AzerNews/

By Laman Sadigova

Armenian experts share the opinion that the draft state budget for 2016 which is under discussion at the parliament will hardly help the ill-economy to survive.

The draft budget for the next year envisages the real GDP growth at 2.2 percent, inflation at 4 percent and the budget deficit at 3.5 percent of GDP. But the bill does not provide for any rise in wages and pension.

The situation in Armenia deepens the already deplorable social crisis rather softening it, at the same time promising even more austere time for the country’s population. Whereas the authorities try to hide real facts and numbers, true statistics and undeniable forecasts reflect the real state of things.

The International Monetary Fund has made a statement that Armenia will receive a loan of $16.3 million, which means that the government has gained the debt of $597.8 million only in the last two weeks.

The ratio of external debt to GDP in the next year may reach scaring 50 percent. Moreover, the public debt is increasing year by year, causing a panic among experts.

The economist Vilen Khachatryan says that the country will start 2016 with a debt of $5.12 billion, which is almost $680 million more than it was earlier in this year: "2016 is the year of economic growth at the expense of debt, the growth rate will gradually reduce. And, what kind of development we are talking about?"

The economist Ashot Yegizaryan shares the same opinion and says that the government has no other source of income to fulfill its obligations under taken loans and it gets into new debt.

Armenia reaches a phase which promises no economic growth, and, in fact, the country is in recession and has no visible ways to overcome this situation.

Representatives of the Armenian authorities as well as a number of state-controlled media actively promote the idea that the vast majority of the country's economic problems are caused by external factors. Before, all the troubles of the country were linked with the global financial crisis, and now they call Russia the "center of crisis". However, only the Armenian government can be blamed in that the country’s economy is like a “fragile petal”, unstable for the global processes.

Many seek the source of the country’s problems in joining the EEU, whilst in fact the Armenian authorities simply cannot carry on responsibilities. Moreover, Armenia had all those problems before it joined the EEU. So the country’s officials, well aware of inefficiency of this policy, joined the Union to throw off all the responsibilities.

The economist Vahan Khachatrian said that the draft budget for 2016 revealed the inadequacy of the current economic system. "The policy pursued by the authorities cannot provide any economic growth or investment.”

The Armenian government has not expressed any eagerness to prepare the program of development for their ill and weak country. It also did not take any measures to stimulate the economic growth, including the implementation of reforms and infrastructure development programs, as the authorities failed to restore the trust of investors and the public. As a result, over the last 7-8 years it has become common practice, when the government explains all its failures and omissions with external factors.

URL: http://www.today.az/news/regions/145395.html

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