Chairman of union of Armenian commodity producers blames dwindling macroeconomic indices on poor handling of investments

YEREVAN, November 27, /ARKA/. Chairman of the Union of Armenian Commodity Producers, Vazgen Safarian, blamed today Armenia’s dwindling macroeconomic indices on poor handling of investments.

According to the official figures of the country’s National Statistical Service, Armenia’s GDP fell by 17.5% in January-October, 2009. The IMF and World Bank have predicted a 12%-15% full-year economic contraction for 2009, while the government says it will make 15%.

Speaking at a news conference Vazgen Safarian said the Union of Commodity Producers had repeatedly asked the government to channel a sizeable portion of the $500 million Russian stabilization loan into boosting small and medium-sized businesses and the industrial sector which would allow to retain industrial production rates and preserve jobs, however the government directed a sizable part of the loan to the construction sector, which despite the government support, failed to get back on recovery track.

According to him, production of cement, construction stone and road metal has slashed. He also said industrial export is expected to drop by 40% from 2008 to $600-620 million.

According to the official figures, Armenian foreign trade in January-October fell by 31% from a year before to 1.1 trillion Drams of $3.2 billion. Exports plunged by 41% to $551.6 million and imports fell by 28.5% to $2.7 billion.

According to Safarian, the government should implement radical economic reforms and stimulate domestic production to help the economy out of the crisis. M.M. -0-