Creation of foundations for long-term economic growth remains major challenge for Armenia –president says

YEREVAN, December 5. / ARKA /. Addressing today the 7th congress of the Union of Industrialists and Entrepreneurs of Armenia President Serzh Sargsyan said the need to create foundations for long-term economic growth still remains a major challenge for Armenia.

"Armenia with its free economy can not remain completely isolated from the global economic processes and talking about the Armenian economy without taking into account global economy’s realities is wrong," said Sargsyan.

In Sargsyan’s words, the international economy is going now through underlying processes - strengthening of the US dollar, the deepening political controversies, and the use of economic sanctions – all this leads to severe economic consequences.

"This year, we have witnessed the deterioration of the economic situation of our largest trading partner (Russia), marked by an 8.8 percent rise in prices, a $90 billion capital outflow and the depreciation of the Russian ruble against the US dollar by more than 40%. The US dollar is strengthening its position across the globe against other currencies. Thus, compared to 2013 December it rose by 10.2 percent against the euro, 8.6 percent against Swiss franc, 4.3 percent against the British pound, 15.1 percent against Japanese yen  and 8.9 percent against Georgian Lari,” he said.

According to him, amid the ongoing uncertainty in the global economy, the main challenge for Armenia is the need to create foundations for long-term economic growth, reduce poverty and unemployment.

"After the recession in the EU over the past two years by 0.7% and 0.4% respectively, no significant recovery is expected this year. It is obvious that Armenia can not go against the tide, and what is happening in the global economy reflects on  our country and our economic indicators,” he said. -0-