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GEORGIAN DEVELOPMENTS AND ARMENIA'S ECONOMY
Vasak Tarposhyan
Hayots Ashkhar Daily
24 Sep 2008
Armenia
Though Georgian-Osatian developments didn't have direct impact on
their neighbor countries, anyway Armenia's economy was significantly
harmed due to that war. There have been no official assessments in
that regard. But according to the calculations of the experts due
to the non-operation of the communication roads Armenia's economy
suffered 700 million dollar's loss.
At the beginning of the conflict and during the period following
it, the damage caused by the conflict was conditioned by firstly the
problems linked with the transportation of the loads. After the bombing
of Gory's railway bridge Armenia was deprived of transportation of
loads by railways.
The first aid goods were transferred by tracks, which is naturally
much more expensive.
This situation continued for 10-15 days. During the period following
it though the railway connection was partially restored, anyway around
a month was required to regulate the road transportation.
Due to the damage of the communication ways the entrepreneurs had
to spare additional money to store the goods in Poty and Batumy. It
was during those days when the so-called not legal expenses were
added. Though the communication between Armenia and Georgia is
completely restored, anyway, as the importers state, the transportation
has become significa ntly expensive because of alternative payments.
The present situation must have had direct impact on Armenia's economy.
It firstly influenced load transportation.
The volume of both import and export was reduced. According to the data
of national statistics service, as compared with the previous month in
August, when there were no problems linked with load transportation,
the export was reduced by 36%. Due to this change 5 % drop has been
recorded in this sphere from January to August, as compared with the
same period of last year.
Though the situation linked with exporting is not very favorable this
year, before that it was possible to maintain last year's level.
The tendencies noticed during the previous months display that the
changes in August are directly linked with the developments that took
place in the region. Particularly in July the export was increased
by 8,7% as compared with June, and in June - by 16,6% as compared
with May.
Due to the damage of the communication roads the export from Armenia
was stopped for some time. Though the economy inside the country
didn't have serious problems, anyway it was impossible to export
ready products to the foreign market.
The processes taking place in the industry led to the drop of the
volumes.
As compared with July in August it was reduced by 4%, whereas in July
6,5% growth was recorded as compared with the previous month.
0D The losses owing the situation created in the industrial sector
were conditioned by the difficulties in importing both raw materials
and ready products. It is well known that this circumstance has both
direct and indirect impact on economy. The problem is mainly linked
with exporting markets, particularly because the export of local
products has always collided with serious problems. And irregular
delivery never contributes to the improvement of competitiveness.
On the other hand the delays linked with the realization have
their impact on the formation of the current assets and the regular
organization of the industry.
Drop of importing volumes was also recorded in August. As compared
with the previous month it was reduced by 18%. It was unprecedented
for the recent 1-2 years.
The lowest economic growth in Armenia was recorded in August, which
made up 3,6% mainly on account of agriculture. Drop was recorded even
in the sphere of construction, something that has not been noticed
during the recent years.
The before mentioned tendencies recorded in economy in August were
mainly influenced by the instable situation in the region, due to which
for around a month Armenia was deprived of the regular possibility
of transportation communication.
Vasak Tarposhyan
Hayots Ashkhar Daily
24 Sep 2008
Armenia
Though Georgian-Osatian developments didn't have direct impact on
their neighbor countries, anyway Armenia's economy was significantly
harmed due to that war. There have been no official assessments in
that regard. But according to the calculations of the experts due
to the non-operation of the communication roads Armenia's economy
suffered 700 million dollar's loss.
At the beginning of the conflict and during the period following
it, the damage caused by the conflict was conditioned by firstly the
problems linked with the transportation of the loads. After the bombing
of Gory's railway bridge Armenia was deprived of transportation of
loads by railways.
The first aid goods were transferred by tracks, which is naturally
much more expensive.
This situation continued for 10-15 days. During the period following
it though the railway connection was partially restored, anyway around
a month was required to regulate the road transportation.
Due to the damage of the communication ways the entrepreneurs had
to spare additional money to store the goods in Poty and Batumy. It
was during those days when the so-called not legal expenses were
added. Though the communication between Armenia and Georgia is
completely restored, anyway, as the importers state, the transportation
has become significa ntly expensive because of alternative payments.
The present situation must have had direct impact on Armenia's economy.
It firstly influenced load transportation.
The volume of both import and export was reduced. According to the data
of national statistics service, as compared with the previous month in
August, when there were no problems linked with load transportation,
the export was reduced by 36%. Due to this change 5 % drop has been
recorded in this sphere from January to August, as compared with the
same period of last year.
Though the situation linked with exporting is not very favorable this
year, before that it was possible to maintain last year's level.
The tendencies noticed during the previous months display that the
changes in August are directly linked with the developments that took
place in the region. Particularly in July the export was increased
by 8,7% as compared with June, and in June - by 16,6% as compared
with May.
Due to the damage of the communication roads the export from Armenia
was stopped for some time. Though the economy inside the country
didn't have serious problems, anyway it was impossible to export
ready products to the foreign market.
The processes taking place in the industry led to the drop of the
volumes.
As compared with July in August it was reduced by 4%, whereas in July
6,5% growth was recorded as compared with the previous month.
0D The losses owing the situation created in the industrial sector
were conditioned by the difficulties in importing both raw materials
and ready products. It is well known that this circumstance has both
direct and indirect impact on economy. The problem is mainly linked
with exporting markets, particularly because the export of local
products has always collided with serious problems. And irregular
delivery never contributes to the improvement of competitiveness.
On the other hand the delays linked with the realization have
their impact on the formation of the current assets and the regular
organization of the industry.
Drop of importing volumes was also recorded in August. As compared
with the previous month it was reduced by 18%. It was unprecedented
for the recent 1-2 years.
The lowest economic growth in Armenia was recorded in August, which
made up 3,6% mainly on account of agriculture. Drop was recorded even
in the sphere of construction, something that has not been noticed
during the recent years.
The before mentioned tendencies recorded in economy in August were
mainly influenced by the instable situation in the region, due to which
for around a month Armenia was deprived of the regular possibility
of transportation communication.