Armenia: experts associate economic decline with political situation

In the opinion of Bagrat Asatryan, an economist, one of the reasons for a significant decline in economic activity in the country is the Armenia's political uncertainty. Artak Manukyan, an advisor to the Acting Premier Nikol Pashinyan on economic issues, has acknowledged that the structure of the economy should be radically revised.

Bagrat Asatryan, who is also a former head of the Central Bank of Armenia, believes that economic issues faded into the background due to political uncertainty. "The situation will change after the stabilization of the political field and the formation of a new parliament," he said.

External factors have also affected the economy: the situation in the international market for raw materials and the slowdown in the pace of the international economy, the economist said. "Armenia imports oil products, which have risen in price by 28.3%. This is an additional burden on the economy," Mr Asatryan has stated, adding that the economic downturn in the Russian economy also had a negative impact – the Russian rouble exchange rate fell by 12% in the current year.

Babken Tunyan, an economist, has noted that the fight against the shadow economy, unleashed by the new government, should also be taken into account.

Mr Manukyan has pointed to a decline in the agrarian sector and the mining industry, which in 2017 ensured some economic growth.