Armenia’s expectations vanishing one by one

/By AzerNews/

By Mushvig Mehdiyev

The results of Armenia's membership at the Eurasian Economic Union can be called "fall of Armenian economy " as it has sent shivers down the spine of the country's people and authorities.

The National Statistic Service's announcement on the outcomes of a month-long membership at the EEU revealed the failed scenario of the Armenian authorities, who pinned great hopes on the trade bloc.

Volume of the foreign trade in Armenia decreased by 30.4 percent with 20 percent and 31.2 percent fall observed in export and import respectively this January compared to the same period last year.

Industrial production in the post-Soviet country suffered a 6.3 percent loss along with 1.8 percent drop in the agricultural produce.

Drop in the production of electricity exceeded 20 percent, which is viewed as one of the major regression following the EEU integration.

The mentioned challenges facing Armenia's economy are among the symptoms of strong dependence on Russia's economic atmosphere. Leading international rating agencies forecast no progress for Russia's economy in their recent reports.

Moody's has downgraded Russia's debt rate to "junk". Just over one month since its last downgrade of Moscow’s credit rating, Moody’s said Russia is expected to experience a deep recession in 2015 and a continued contraction in 2016.

Collapsing economy in Russia, a flagman of the EEU, has paved the way for serious economic problems in the economies of the member-states, including Armenia.

Armenia's Central Bank said the pace of economic growth in the country is slowing down given the unfavorable external environment and economic atmosphere in particular.

The bank forecasts 5.5 percent inflation rate in Armenia.

The official statistical data revealed earlier that the inflation rate in January rose by 1.25 percent compared to previous months. Moreover, a 4.3 percent rise was observed particularly in the food prices this year.

Local experts say Armenia's economy is observing a free fall which is proved by year-on-year worsening life conditions in the country. Artak Manukyan, a local economist, believes that the life will be worse this year than it was in 2014.

Based on the aforementioned stagnation in many fields of economy, forecasts by international organizations on Armenia's economic progress promise no good news for Armenia in the upcoming months.

Armenia got bad mark from Fitch and Moody's as they have downgraded their outlooks for the former Soviet nation's economic growth. The European Bank for Development and Reconstruction has even zeroed out its forecast on economy for Armenia in 2015.

Armenia's President Serzh Sargsyan was the harbinger and main supporter of Armenia's devotion to the EEU. In other words, he is the main "hero" of the existing EEU-linked challenges facing the smallest country of the South Caucasus.

Renowned American writer Edgar Allan Poe would have written the second part of his famous "Fall of the House of Usher" story if he lived in modern Armenia, changing its title to "Fall of the House of Sargsyan."