Experts: Armenia is on verge of mass starvation

By Azernews

By Gunay Hasanova

Armenians have faced a threat of mass starvation, as the high long-term unemployment negatively affects people’s purchasing power and domestic production.

The official statistics reveal that during January - September 2016, 121.7 tons of flour were produced in Armenia.

Compared to the same period of 2015, the production of flour in Armenia decreased by 11.8 percent, according to the National Statistical Service of Armenia, Armenpress reported.

In January-September 201, 561.1 tons of cereals were produced in Armenia, which is by 14.1 percent less compared to the same period of last year.

Armenia produced 209.5 tons of bread in January-September 2016,  which is 2.3 percent less compared to the same period of last year. Also, some 11,880 tons of conditioner products were produced in Armenia, 1.9 percent less compared to the same period of last year.

Experts consider that the decrease is related to population’s lower purchasing power.

“With little money now, people prefer to eat less. That’s the reality. The demand for flour has decreased compared to last year. That’s due to the decrease in consumer’s number. With the population emigrating, on the one hand, those staying in Armenia are plunging into poverty”, said economist Ivan Musoyan.

The volume of unemployment in the first quarter of 2016 made 19.3 percent of able-to-work population in the country, and due to the wrong structure of national economy, new vacancies do not seem to come up soon.

Meanwhile, the economy of the country remains critical, demonstrating unbelievably low indices each year. Descending economy, high poverty and increasing outflow of people are the pure realities in Armenia, which lack any governmental scenario or program to change the situation.  

Armenia’s external debt is growing, as well as the budget deficit. Moreover, the economic growth is significantly lower than it was foreseen. The state debt of Armenia has already amounted to $5.36 billion as of the end of the first half of 2016. The forecasted GDP in 2016 amounts to 5.443 trillion drams. Consequently, by the end of the first half-year, the national debt of Armenia made up 46.7 percent of GDP, which is quite risky for the country’s economy.

Despite different positive assurances from the government on achieving a stable situation in the country, the economy is continuing to fail.