Finance Minister: Forbes Magazine’s ranking doesn’t reflect things in Armenia
08.07.2011,
17:22
Forbes Magazine’s ranking, in which Armenia was placed among the world’s worst economies, doesn’t reflect things in the country.
YEREVAN, July 7. /ARKA/. Forbes Magazine’s ranking, in which Armenia was placed among the world’s worst economies, doesn’t reflect things in the country, Armenian Finance Minister Vache Gabrielyan said Thursday at a joint news conference with Jean-Michel Happi, head of the WB Yerevan Office.
Armenia ranked second among the worst economies in the world by Forbes Magazine in 2011. The data were obtained by analyzing average macro-economic indicators of 177 countries over the past three years and IMF GDP growth and inflation forecasts for 2012.
According to Forbes ranking, the list of five worst economies is toped by Madagascar, followed by Armenia, Guinea, Ukraine and Jamaica.
According to Forbes, despite a 15% economic slowdown in 2009 due to the global financial crisis, Armenia is still trying to keep up with the rest of the world.
The Armenian economy in 2010 saw a 2.6% year-on-year GDP increase, when it declined by 14.9%.
“The rank Forbes gave to Armenia is based on some indicators for the recent three years, particularly economic growth, inflation and current balance deficit, which worsened because of the 2009 crisis,” Gabrielyan said.
However, he said, these average indicators for last three years give incomplete picture of the country’s economic development.
Forbes said that Armenia and some other countries have found themselves among worst economies because of the crisis, while others have been included in this list because of mismanagement.
“It is obvious that Armenia faces crisis-caused problems, and the ranking shows rather challenges than the real situation,” the minister said.
He said that 15% economic decline was recorded in the country in 2009. Forbes’ rank is grounded on this decline, which was caused by some sluggishness in construction sector that followed vigorous activity, on contraction in transfers and inflation.
The minister said that if not to take into account 2009 and stat considering the situation from 2010, picture will be absolutely different, since inflation is lessening and the economy is growing in the country.
He also pointed out that Armenia’s macroeconomic policy was quite successful, and international rating agencies’ data show this.
“Indicators of 2009 shouldn’t be taken as basis for estimating prospects for economic development in Armenia – this is no more than a momentary estimation,” he said.
Jean-Michel Happi, on his side, said that Armenia’s economy is not worst.
He said that the country’s import two times exceeded export and inflation reached 9.5% rate amid the crisis, but doesn’t mean that this is a long-lasting situation mainly caused by unsuccessful year for agriculture. But inflation is expected to subside this year thanks to the steps taken to put things right. -0-
Armenia ranked second among the worst economies in the world by Forbes Magazine in 2011. The data were obtained by analyzing average macro-economic indicators of 177 countries over the past three years and IMF GDP growth and inflation forecasts for 2012.
According to Forbes ranking, the list of five worst economies is toped by Madagascar, followed by Armenia, Guinea, Ukraine and Jamaica.
According to Forbes, despite a 15% economic slowdown in 2009 due to the global financial crisis, Armenia is still trying to keep up with the rest of the world.
The Armenian economy in 2010 saw a 2.6% year-on-year GDP increase, when it declined by 14.9%.
“The rank Forbes gave to Armenia is based on some indicators for the recent three years, particularly economic growth, inflation and current balance deficit, which worsened because of the 2009 crisis,” Gabrielyan said.
However, he said, these average indicators for last three years give incomplete picture of the country’s economic development.
Forbes said that Armenia and some other countries have found themselves among worst economies because of the crisis, while others have been included in this list because of mismanagement.
“It is obvious that Armenia faces crisis-caused problems, and the ranking shows rather challenges than the real situation,” the minister said.
He said that 15% economic decline was recorded in the country in 2009. Forbes’ rank is grounded on this decline, which was caused by some sluggishness in construction sector that followed vigorous activity, on contraction in transfers and inflation.
The minister said that if not to take into account 2009 and stat considering the situation from 2010, picture will be absolutely different, since inflation is lessening and the economy is growing in the country.
He also pointed out that Armenia’s macroeconomic policy was quite successful, and international rating agencies’ data show this.
“Indicators of 2009 shouldn’t be taken as basis for estimating prospects for economic development in Armenia – this is no more than a momentary estimation,” he said.
Jean-Michel Happi, on his side, said that Armenia’s economy is not worst.
He said that the country’s import two times exceeded export and inflation reached 9.5% rate amid the crisis, but doesn’t mean that this is a long-lasting situation mainly caused by unsuccessful year for agriculture. But inflation is expected to subside this year thanks to the steps taken to put things right. -0-
