Armenian economy-2011

Will Armenia manage to overcome the economic crisis which hit it in
2009?
The government says that the tax and budgetary policy provided in 2010 is a basis for macroeconomic stability, which could lead to speedy economic growth in 2011.

According to the minister of the economy, Tigran Davtyan, today the economy of Armenia is on the road of stability and reconstruction, with GNP growing by 3-4% annually.

In December the government adopted the state budget for 2011, amounting to 1.1 trillion drams ($1=360 drams). This year outlay on the social sphere has been increased by 10%.

Armenian prime minister Tigran Sarkisyan recently stated that the Central Bank has sufficient resources for not putting budget implementation at risk. He called the document stable and socially-focused.

However, some experts and the opposition say that 2010 wasn't a successful economic year and 2011 will be similar. They think that Armenia has serious problems in the sphere of inflation, unemployment and social standards. Moreover, the 2011 budget doesn't presuppose the solving of some systemic problems. The deputies adopted the document without taking into account Central Bank advice.

Furthermore, the external debt of Armenia surpasses $3.9 billion. Considering the frozen conflict with Azerbaijan and high level of corruption, this is also a serious economic problem.

Imports surpass exports. The economy is based on trade capital and focused on imports, which prevents the economy from naturally developing.

Susanna Petrosyan. Yerevan. Exclusively to VK.