Armenia’s inner demons devour country from inside

/By AzerNews/

By Laman Sadigova

The current slowdown in the sanctions-hit Russian economy and crash of the ruble have significantly deteriorated the quality of life for Armenian labor migrants in Russia.

Hopeless Armenian job seekers are now eyeing other countries for labor opportunities.

Armenia’s ailing economy was one but not the only reason pushing many Armenians to leave their country. Receiving 69.9 percent of money transfers from its giant northern neighbor, the Post Soviet country felt the worst impact of Russia’s downing economy. The implications were above expectations as transfers from Russia fell by 30 percent, putting the national currency at risk. The devaluation of the national currency dram boosted inflation to 5.8 percent, compounded by a 15.3 percent fall in the dram rate. This figure was alarming after exceeding the maximum admissible limit of 5.5 percent.

Overall economic activity in Armenia was less than 2.5 percent since the beginning of the year.

The situation prevented many Armenians from migrating to Russia, as many migrants had to return due to an absence of job prospects.

The latest statistical data shows that the unemployment rate rose to 21 percent in Armenia among the 2.9 million population.

In 2011, the government promised that it will take necessary measures to reduce migration and improve the living standards in the country. However, statistics show no real progress.

Not allowing Armenia to breathe, its government deprives the country of its youth; the young population leaves the country as they see no alternative there. There are only two alternatives – to obey the criminal rules occurring in the country or to migrate – and people mostly choose the second option.

Moreover, demographers are paying attention to one more thing. Migration changes not only numbers, but also "qualitative structure” of the population. Young, healthy, and educated citizens leave Armenia and prefer not to come back.

However, the current conditions, characterized by double-digit inflation and a limited number of jobs, contribute to increasing discontent in society.

Moreover, it is possible that the worst for the Armenian economy is yet to come. In any case, many experts, including Armenians themselves, warn Yerevan may see another explosion of the "debt bomb." Armenia's external debt has reached around $4 billion according to the latest data issued by the National Statistics Service.

Despite the government’s reiteration that the debt is controllable, last year's data showed a gradual rise in external debt and its approach to the red line.

The massive outflow of population from the country in fact diminishes the country's opportunities for improvement, as pessimistic reports about labor flight are becoming more frequent.