EBRD: Armenian economy should produce goods with higher added value

YEREVAN, October 20. /ARKA/. Armenian government should do whatever necessary to enable the national economy to produce goods with higher added value, Kurt Bayer, a member of the EBRD directorial board’s delegation, answering ARKA News Agency’s question.

Therefore it is very important to create favorable conditions for educated people in Armenia to deter them from leaving the country, he said Wednesday at a news conference.

Bayer said that Armenian economy had been stricken hard by the crisis and found its recovery quite sluggish.

This show structural ineffectiveness in the economy, he said, which made it very vulnerable to adverse developments in the world economy.
At the same time, Bayer said that Armenia’s financial sector demonstrated stability during the crisis.

He said that Armenia is one of few EBRD presence countries whose banking and financial systems have withstood the crisis.

Speaking about economic challenges in Armenia, the member of the EBRD directorial board’s delegation said that Armenia’s economy is not diversified enough, and this makes it very vulnerable also to prices for raw materials.

He pointed out Armenia’s limited exportation adding that this is an endemic problem.

Bayer also singled out corruption among the country’s biggest troubles.

Many potential investors, he said, view Armenia as a country with rampant corruption - they say that law is not properly observed here, and people whose economic rights are infringed can’t find protection in courts.

Bayer said that many steps have been taken in the past and things are moving in the right direction, but the government still has plenty to do for diversification of the economy. -0--