Economist predicts 'steady deterioration' of Armenian economy
Economist Ashot Yeghiazaryan says Armenia’s economy has encountered many problems since the beginning of the year. “This is mainly explained by the situation in Russia where problems emerged as a result of heavy sanctions imposed on the country. Since Armenia greatly depends on Russia, we have also suffered serious losses, which were mainly perceived in two directions – decline in remittances and foreign trade and increase in the level of poverty,” he said. Russian companies also felt the burden of sanctions which made them decrease the volume of investments in Armenia. In reply to the observation that capital flows continue from Armenia to offshore zones, the economist said, “Armenia is not an attractive place for investments; therefore people prefer to keep their capital in safer countries.” In order to overcome the current crisis, Mr Yeghiazaryan suggests deepening Armenia’s relations with the European Union. "There is no alternative. We seem to have forgotten what the European Union offered us - a grant in the amount of 4.5 billion Euros, sustainable development in some areas and many other things. However, we refused it and chose to join the Eurasian Economic Union,” he stressed. “If Armenia does not cement its relations with the EU and continues to depend on Russia, the situation may steadily deteriorate in the country,” he said in conclusion.
