Opposition MP: Armenia suffered highest economic decline in 2020

YEREVAN, February 23. /ARKA/. Armenian parliament member Mikael Melkumyan from the opposition Prosperous Armenia party questioned today the official numbers, which say that the country's economy declined last year by 7.6%, arguing that the real contraction amounted to 12-13%, the highest decline in the Eurasian Economic Union, of which Armenia is a member.

Speaking at a meeting of the standing parliamentary committee on regional and Eurasian integration issues Melkumyan explained the highest decline in Armenia by the war in Nagorno-Karabakh, coronavirus pandemic and a number of objective and subjective reasons.

“According to official figures, the economy contracted last year by about 7.5%, but if we take into account that the original projection was 4.9% growth, we can say that the Armenian economy has already contracted by 12-13%, which is very painful and the recovery will be very difficult,” Melkumyan said.

For comparison, he referred to Belarus whose economy last year dropped only by 2.3%, Kazakhstan - by 2.6%, Russia - by 3.1%, and Azerbaijan - by 4%.

“Unfortunately, we have the biggest recession. There are many objective and many more subjective reasons. Armenia needs systemic changes and political potential, ”Melkumyan said.

In 2020, Armenia's economy grew only in the first quarter by 3.9% In the second quarter it dropped by 13.7% year-on-year, in the third quarter GDP fell by 9%, and in the fourth quarter - by 8.8%. In terms of money, GDP last year amounted to 6,183,742,1 million drams. Per capita GDP last year dropped to 2, 087, 762 drams or $4,269. ]

In its latest flagship Global Economic Prospects report, published in early January, 2021, the World Bank predicted 3.1% growth for Armenia's economy in 2021 and 4.5% growth in 2022 after contracting by 8% in Covid-19 inflicted 2020.

The government has projected 3.2% growth for 2021 and 4% (± 1.5%) inflation. ($1 - 524.48 drams). -0-