Russia to suffer heavier losses from global crisis than Armenia, expert says
YEREVAN, October 23. /ARKA/. Russia is likely to suffer bigger losses from the global financial crisis than Armenia, according to Academician Abel Aghanbekyan, head of the Business Management Doctor Program.
Since Armenia lacks “seatbelts to be safe from the crisis, the country needs to settle all the issues on-the-run”, the expert said at the roundtable Armenian and Russian Economies Today and Tomorrow.
Armenia and Russia have quite different relations with other courtiers, and global developments have a contradictory influence on Armenia, according to Aghanbekyan.
The record-low oil prices can be an advantage and may result in a two-fold cut in petrol prices, he said, adding local gas-filling stations will have an opportunity to lower petrol prices.
The expert believes changes in the euro/dollar exchange rate are likely to influence Armenia depending on the imports and exports.
Aghanbekyan said the global financial crisis would first of all hit investments in Armenia’s economy.
“Feeling lack of liquidity, people cut donations,” he added. Moscow is now in a difficult situation, as the foreigners who were involved in urban construction have lost their jobs and do not have money to return home,” Aghanbekyan said.
This will affect foreign transfers to Armenia, according to the expert. “This will intensify inflation pressure, with the crisis devaluating savings and hampering the banking business,” he said.
Russian non-commercial transfers to Armenia totaled $858.2mln as of end-August – 38.4% ($620mln) year-on-year increase, the Central Bank of Armenia reports.
Aghanbekyan believes shrewd and well-organized businesses can derive benefits from the crisis. “Good companies increase their market share during a crisis,” he said. Good financial organizations buy sinking stocks to expand their business.
“On the one hand, a crisis is a major stress, on the other hand, it purifies markets and helps them boost in the future,” the expert added.—0--
