Global crisis to bite real sector of Armenia’s economy, NASDAQ OMX board member says

YEREVAN, March 3. /ARKA/. Armenia will feel the global financial crisis when it bites the real sector of economy this year, NASDAQ OMX Board Member Johan Fredholm said last week during the first forum on capital markets of Armenia. According to him, the global recession has reached Armenia, though it is not a financial crisis, with the local banking system remaining stable. The crisis influences the real sector of the country’s economy.

The organizer of the forum was Grant Thornton Amyot (Armenian member of Grant Thornton International). The sponsors of the event are the Central Bank of Armenia, RA Ministry of Economy, USAID/CAPS and American Chamber of Commerce in Armenia (AmCham).

Due to the crisis, Armenia posted a slowdown in foreign remittances, Fredholm said, adding the global recession hit the country’s construction sector and resulted in a plunge of copper and molybdenum prices.

However, the crisis has not yet sent Armenia into a tailspin, he said, pointing out the country’s robust banking system and relatively weakly developed financial sector.

The expert believes Armenia can attract more investments by boosting the capital market. According to Fredholm, prices in the country are more stable than on other West European developing counties, which makes Armenia attractive for investments. Z. Sh. –0--