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ARMENIA REQUIRES SIGNIFICANT REFORMS IN BUSINESS ENVIRONMENT, INCREASED COMPETITION AND IMPROVED PHYSICAL INFRASTRUCTURE: EBRD REPORT
YEREVAN, March 7. /ARKA/. As a landlocked country with limited access
to neighbouring markets, Armenia requires significant reforms of its
business environment, increased competition and improved physical
infrastructure, the European Bank for Reconstruction and Development
said it its Transition report 2012.
"The country's relatively monopolised economy remains overly dependent
on low value added commodity exports, which makes it vulnerable to
negative shocks suffered by its trading partners," the report states.
Economic prospects are doomed by the uncertain situation in the world,
according to the report. In order to confirm economic growth rates at
nearly 4% in 2012 and 2013 it will be necessary to increase monetary
transfers and demands from international partners, particularly
Russia. It is also important to have prices of main raw commodities
export quite high.
The experts highlighted in the document that economic rally rates
boosted after the crisis and the main growth catalysts remain mining
and processing industry sectors.
Agricultural sector also rallied from the sharp economic slowdown in
2010 due to more favorable weather conditions and increasing monetary
transfers. Construction growth rates also accelerated after the crisis
of 2009.
According to the report, the government continues fulfilling measures
on budget consolidation to maintain the state debt at the acceptable
level within IMF program.
Lending growth was significant and reflected some low level of
financial mediation. Imbalances dropped however negative deficit on
the current balance remains high at nearly 11% of GDP.
As main priorities for 2012 the experts highlight the importance of
improving the business environment, boost domestic and foreign trade
through modernization of transport and communication infrastructure
which will foster the development of export-oriented sectors of
economy.
The EBRD also recommended to the government to go on with the efforts
to advance the local capital markets.
"The ambitious de-dollarisation agenda should be supported by a
consistent shift of the monetary policy framework from de facto peg
to inflation targeting. The upcoming pension reform should serve as
a strategic opportunity to develop domestic markets for government
securities, bank deposits and equities through an active institutional
investor base providing steady demand for long-term investments,"
the report stated.-0-
YEREVAN, March 7. /ARKA/. As a landlocked country with limited access
to neighbouring markets, Armenia requires significant reforms of its
business environment, increased competition and improved physical
infrastructure, the European Bank for Reconstruction and Development
said it its Transition report 2012.
"The country's relatively monopolised economy remains overly dependent
on low value added commodity exports, which makes it vulnerable to
negative shocks suffered by its trading partners," the report states.
Economic prospects are doomed by the uncertain situation in the world,
according to the report. In order to confirm economic growth rates at
nearly 4% in 2012 and 2013 it will be necessary to increase monetary
transfers and demands from international partners, particularly
Russia. It is also important to have prices of main raw commodities
export quite high.
The experts highlighted in the document that economic rally rates
boosted after the crisis and the main growth catalysts remain mining
and processing industry sectors.
Agricultural sector also rallied from the sharp economic slowdown in
2010 due to more favorable weather conditions and increasing monetary
transfers. Construction growth rates also accelerated after the crisis
of 2009.
According to the report, the government continues fulfilling measures
on budget consolidation to maintain the state debt at the acceptable
level within IMF program.
Lending growth was significant and reflected some low level of
financial mediation. Imbalances dropped however negative deficit on
the current balance remains high at nearly 11% of GDP.
As main priorities for 2012 the experts highlight the importance of
improving the business environment, boost domestic and foreign trade
through modernization of transport and communication infrastructure
which will foster the development of export-oriented sectors of
economy.
The EBRD also recommended to the government to go on with the efforts
to advance the local capital markets.
"The ambitious de-dollarisation agenda should be supported by a
consistent shift of the monetary policy framework from de facto peg
to inflation targeting. The upcoming pension reform should serve as
a strategic opportunity to develop domestic markets for government
securities, bank deposits and equities through an active institutional
investor base providing steady demand for long-term investments,"
the report stated.-0-