Economist: We will live 10 percent worse in 2017
We cannot expect any serious results from 3.2 percent economic growth index on which 2017 state budget is based, said today economist Vilen Khachatryan at the press conference, “We will end the year with deflationary trends and will start 2017 with 1.4 percent inflation. Next year we will consume 10 percent less compared to 2013. It is a negative trend and shows that our society will live worse. People will either shift to saving regime or will not have money to spend. It will not refer to the rich. The migration of people, fall in economically active population, which showed results, unemployment contributed to such an index.” Vilen Khachatryan considers increase in exportation levels to be the only positive tendency, “It is beneficial for the CB, which reserves will grow in this case.” The economist highlighted that 8.8 percent of the state budget will be directed to the servicing of the state debt, “Next year we will cross USD 6 billion’s line. More likely the debt threshold will be increased through the NA by making it 70 percent to the GDP, at present it makes up 60 percent, so that we can involve more debts in the future.” Vilen Khachatryan also noted that it is positive that deficit was lowered to 150 million, revenues have grown, expenditures have been reduced. He also touched upon the default declared by the RA first President Levon Ter-Petrosyan , by saying that there will be technical default in terms of servicing of the national debt, which will be resolved through the NA.
