Another lockdown would be catastrophic for Armenian economy, economist says
23.09.2020,
15:22
Another lockdown that may be triggered by a second wave of coronavirus would have a catastrophic impact on Armenia's economy, economist Karen Sargsyan said today.
YEREVAN, September 23. /ARKA/. Another lockdown that may be triggered by a second wave of coronavirus would have a catastrophic impact on Armenia's economy, economist Karen Sargsyan said today.
"If Armenia appears in another lockdown the economy would suffer a great damage and it would be pointless to talk about growth. Because of the insufficient financial injections the economic downturn would aggravate further and it would take more time, effort and resources to overcome it," he said to a press conference.
According to Sargsyan, insufficient government support for the economy may make it even more difficult to overcome the aggravated crisis.
"While the impact of the second wave of the coronavirus on the economy is not felt, it is necessary to make financial injections," he said.
If a second wave of coronavirus does not force a lockdown, then it would be possible to talk about economic growth in 2021, he said. However, according to him, these forecasts are relative, since the situation in the world is changing constantly.
According to Sargsyan, it is necessary to think over measures that will help to cope with the current epidemiological situation in the country and, at the same time, will allow the economy to operate in full.
He also noted that the 24 assistance programs designed by the government to help businesses and individuals counter the socio-economic consequences of the coronavirus are not enough to overcome the full impact of the pandemic.
"The main problem in the framework of this economic downturn is that more financial injections into the economy are needed to overcome the crisis without shocks," he said.
As of September 10, the Armenian government has released 163.4 billion drams (almost $335 million) to help companies and citizens overcome the consequences of the coronavirus crisis. Overall, the government approved 24 programs. Some are designed to support agriculture, tourism, SMEs, microbusiness, IT and other industries, others - to show financial assistance to various groups of the population. Some of the programs have already been completed, some are still in the process.
Meantime, the government is considering new opportunities for showing assistance for the citizens. Also, according to Armenia's Central Bank, the country's economy will drop this year by 6.2%, up from the earlier predicted decline within 4% and grow by 4-5% in 2021. The projected inflation rate for 2021 is 1.-2%.
The Armenian government decided on September 11 to replace the state of emergency, declared on March 16 to stop the spread of coronavirus, with nationwide quarantine regime that will be in force until January 11, 2021.
The state of emergency was extended five times. Restrictions on free movement and some types of economic activity introduced on March 24 were removed on May 4. Public transport, gyms, kindergartens and catering facilities were allowed to resume on May 18 and on August 12, Armenia allowed the entry of foreigners and holding of meetings and rallies, but wearing masks and observing social distance remain mandatory. -0-
"If Armenia appears in another lockdown the economy would suffer a great damage and it would be pointless to talk about growth. Because of the insufficient financial injections the economic downturn would aggravate further and it would take more time, effort and resources to overcome it," he said to a press conference.
According to Sargsyan, insufficient government support for the economy may make it even more difficult to overcome the aggravated crisis.
"While the impact of the second wave of the coronavirus on the economy is not felt, it is necessary to make financial injections," he said.
If a second wave of coronavirus does not force a lockdown, then it would be possible to talk about economic growth in 2021, he said. However, according to him, these forecasts are relative, since the situation in the world is changing constantly.
According to Sargsyan, it is necessary to think over measures that will help to cope with the current epidemiological situation in the country and, at the same time, will allow the economy to operate in full.
He also noted that the 24 assistance programs designed by the government to help businesses and individuals counter the socio-economic consequences of the coronavirus are not enough to overcome the full impact of the pandemic.
"The main problem in the framework of this economic downturn is that more financial injections into the economy are needed to overcome the crisis without shocks," he said.
As of September 10, the Armenian government has released 163.4 billion drams (almost $335 million) to help companies and citizens overcome the consequences of the coronavirus crisis. Overall, the government approved 24 programs. Some are designed to support agriculture, tourism, SMEs, microbusiness, IT and other industries, others - to show financial assistance to various groups of the population. Some of the programs have already been completed, some are still in the process.
Meantime, the government is considering new opportunities for showing assistance for the citizens. Also, according to Armenia's Central Bank, the country's economy will drop this year by 6.2%, up from the earlier predicted decline within 4% and grow by 4-5% in 2021. The projected inflation rate for 2021 is 1.-2%.
The Armenian government decided on September 11 to replace the state of emergency, declared on March 16 to stop the spread of coronavirus, with nationwide quarantine regime that will be in force until January 11, 2021.
The state of emergency was extended five times. Restrictions on free movement and some types of economic activity introduced on March 24 were removed on May 4. Public transport, gyms, kindergartens and catering facilities were allowed to resume on May 18 and on August 12, Armenia allowed the entry of foreigners and holding of meetings and rallies, but wearing masks and observing social distance remain mandatory. -0-
