The need for a more diversified economy is a major lesson that Armenia must draw from the period of crisis that it went through last year, according to Prime Minister Tigran Sargsyan.
“It was because of the low level of economic diversification that we saw a steeper economic decline than other countries, which possess a higher level of diversification,” said Sargsyan on Tuesday, reporting on the 2009 state budget fulfillment to Armenian lawmakers.
“The problem that we now face is to raise the level of our economy’s diversification and, of course, reduce dependence on construction, in which we had the steepest decline,” the premier added. “Achieving a higher level of diversification must be the paramount task of our economic system in the years to come.”
Armenia’s economy had been expanding at a double-digit rate since 2001, but the growth ended last year and gave way to a 14.4 percent decline amid the deepening fallout from the global economic recession. Among the factors that contributed to the steep decline were a sharp reduction in investments on which the country’s expanding construction market depended. Other factors that may have furthered the higher rates of the economy’s contraction were a fall of prices on the international market of metals, one of Armenia’s major export items, as well as a decrease in the amount of remittances wired to Armenians by relatives working or living abroad, which had shored up demand on the import-oriented country’s commodity and services markets.
The patterns began to change this year as the country recorded a 7.2 percent year-on-year growth for January-April. The positive statistics and trends have boosted the government confidence that Armenia has moved past the crisis and will end 2010 on a high note.
Among other “crisis lessons” listed by the premier in his far-ranging speech in parliament are the need for ensuring a competitive environment, which he said will stimulate investments and reveal new spheres for business; revealing potentialities for export; and “giving fresh impetus” to reforms, which “will hold out new opportunities for modernizing our economic system.”
English
Հայերեն
back to top 
Readers' comments
Read commented Article
Post a comment
Read all 3 comments
Comments are welcomed and encouraged. However, comments not pertaining to the topic or containing slander or offensive language will be deleted. You have to be registered to be able leave your comment. Sign in or Register now for free.