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FOREIGN INVESTORS TIRE OF ARMENIA
Vestnik Kavkaza
Sept 18 2012
Russia
Susanna Petrosyan, Yerevan. Exclusively to VK
Since early September, a new wave of devaluation of the Armenian dram
was registered. At the Armenian stock exchange $1 costs 412 drams,
while a week ago $1 cost about 408 drams. Thus, devaluation was 11%
in few days. At the moment dollar demand increases, and it leads to
devaluation of dram.
Early September was marked by the growth of flour prices. Previously
50-kilo bag of flour cost 11 500 drams; now it costs 12 thousand
drams. Bread became more expensive as well. If prices remain the same,
it means bread~Rs weight reduces.
The member of the Council of Republican Party of Armenia (RPA), the
head of the constant parliamentary committee on fiscal issues, Gagik
Minasian, is sure that economic indexes of the first half of the year
are positive in Armenia which enables prediction of stability of basic
macroeconomic indexes and absence of problems with implementation of
the state budget. According to him, the analysis is based on data
published by the statistics service. They say that the index of
economic activity was 7.7% in January-July; the economic growth is
registered in all spheres except for construction. The results of
the first half of 2012 confirm over-fulfillment of budget inflows,
while the price growth remains within predicted limits in the end of
the year.
At the same time, such predictions and optimistic attitudes do not
influence the social situation. Population~Rs income hasn~Rt grown
in the period. The wage level in Armenia is meaningful in this context.
Armenia has the slowest pace of wages~R growth among the CIS countries
~V 1% only.
This index doesn~Rt correlate with official information of the 13-per
cent economic growth in industry which is the biggest among the CIS
countries. Industry is the major segment of Armenian economy. The
official statistics data states that in the first half cost of the
produced goods was 501 billion drams. The agricultural volumes were
203 billion drams; the construction volumes ~V 130 billion drams. The
13-per cent boom in the biggest sphere of economy couldn~Rt but lead to
increase of living standards ~V increase of wages and purchasing power.
However, wages grew only by 1%. In the context of prices increasing and
wages staying the same, purchasing power of population couldn~Rt grow.
About 325 thousand citizens appeared between beggary and poverty.
These people have income in 6530 drams ($17.5) per person in a month.
Another relatively ~Ssuccessful~T group of citizens has income in
12242 drams ($30) in a month.
The hardest social situation and odd indexes which are far from normal
economic logistics are not new. However, a special attention should
be paid to decrease of foreign investments to Armenian economy by 40%.
The volume of foreign investments into Armenian economy in the first
half of 2012 was $266 million. This index is the lowest in recent
6 years. Russian investments into Armenian economy reduced by 80%;
French investments ~V by 65%; the American investments ~V by 78%;
the UK investments ~V by 81%. These countries are main investors to
the Armenian economy. The dynamics show that Armenian economy lacks
attraction for foreign investors. It is another reason for thinking
over the current socio-economic situation in the country.
http://vestnikkavkaza.net/analysis/economy/31518.html
Vestnik Kavkaza
Sept 18 2012
Russia
Susanna Petrosyan, Yerevan. Exclusively to VK
Since early September, a new wave of devaluation of the Armenian dram
was registered. At the Armenian stock exchange $1 costs 412 drams,
while a week ago $1 cost about 408 drams. Thus, devaluation was 11%
in few days. At the moment dollar demand increases, and it leads to
devaluation of dram.
Early September was marked by the growth of flour prices. Previously
50-kilo bag of flour cost 11 500 drams; now it costs 12 thousand
drams. Bread became more expensive as well. If prices remain the same,
it means bread~Rs weight reduces.
The member of the Council of Republican Party of Armenia (RPA), the
head of the constant parliamentary committee on fiscal issues, Gagik
Minasian, is sure that economic indexes of the first half of the year
are positive in Armenia which enables prediction of stability of basic
macroeconomic indexes and absence of problems with implementation of
the state budget. According to him, the analysis is based on data
published by the statistics service. They say that the index of
economic activity was 7.7% in January-July; the economic growth is
registered in all spheres except for construction. The results of
the first half of 2012 confirm over-fulfillment of budget inflows,
while the price growth remains within predicted limits in the end of
the year.
At the same time, such predictions and optimistic attitudes do not
influence the social situation. Population~Rs income hasn~Rt grown
in the period. The wage level in Armenia is meaningful in this context.
Armenia has the slowest pace of wages~R growth among the CIS countries
~V 1% only.
This index doesn~Rt correlate with official information of the 13-per
cent economic growth in industry which is the biggest among the CIS
countries. Industry is the major segment of Armenian economy. The
official statistics data states that in the first half cost of the
produced goods was 501 billion drams. The agricultural volumes were
203 billion drams; the construction volumes ~V 130 billion drams. The
13-per cent boom in the biggest sphere of economy couldn~Rt but lead to
increase of living standards ~V increase of wages and purchasing power.
However, wages grew only by 1%. In the context of prices increasing and
wages staying the same, purchasing power of population couldn~Rt grow.
About 325 thousand citizens appeared between beggary and poverty.
These people have income in 6530 drams ($17.5) per person in a month.
Another relatively ~Ssuccessful~T group of citizens has income in
12242 drams ($30) in a month.
The hardest social situation and odd indexes which are far from normal
economic logistics are not new. However, a special attention should
be paid to decrease of foreign investments to Armenian economy by 40%.
The volume of foreign investments into Armenian economy in the first
half of 2012 was $266 million. This index is the lowest in recent
6 years. Russian investments into Armenian economy reduced by 80%;
French investments ~V by 65%; the American investments ~V by 78%;
the UK investments ~V by 81%. These countries are main investors to
the Armenian economy. The dynamics show that Armenian economy lacks
attraction for foreign investors. It is another reason for thinking
over the current socio-economic situation in the country.
http://vestnikkavkaza.net/analysis/economy/31518.html