The only catalyst for Armenia's economic growth is the Russian-Ukrainian conflict – Manaseryan
YEREVAN, August 26. /ARKA/. The only catalyst for the Armenian economic growth now is the Russian-Ukrainian conflict, economist Tatul Manaseryan said today when speaking at a round table on international sanctions (against Russia) and their impact on the economies of EEU member states, organized by the Analytical Center for Strategic Research and Initiatives (ACSRI) on Friday in Yerevan.
"What many perceive as an achievement, for example, the double-digit GDP growth posted for the first half of the year, for me personally is a threat, because not only the rating agencies, but also the government itself and the World Bank did not foresee such growth. It is hard to deal not only with an economic downturn, but also with unforeseen growth, because this is an economic doping that will pass. The only catalyst for the Armenian economy now is the Russian-Ukrainian conflict (that made tends of thousands of Russians to migrate to Armenia). I don't see any other objective reasons," Manaseryan said.
He noted that according to their expert group's calculations, more than 200,000 visiting non-tourists have temporarily settled in Armenia, which has artificially boosted Armenia's purchasing power.
"The paradox is that along with double-digit growth there is an increase in poverty rate. I want to focus your attention on the fact that about half of Armenia's population is either at or below the poverty line. I do not remember such a paradox and there is no way to explain it. The local population can't afford prices which are rising," said the economist.
He noted that the government reported an 8% inflation, 'forgetting that we can't deceive the population, because we are well aware that 8% is a weighted average inflation of 500 items of goods and services.'
"But the prices of the basic necessities have gone up in double digits, and that's really a threat to economic security," Manasaryan said.
According to the National Statistical Committee, Armenia’s economic activity grew by 13.1% in the first seven months of 2022 from the same period of 2021. -0-
