Armenia on verge of default

By Azernews

By Rashid Shirinov

Dreams of the Armenian government of a bright future of the national economy are continuously fading out, as the real facts and statistics show the true economic situation.

Armenian media outlets, economists and experts, who can soberly assess the seriousness of the situation, have long ago stated that the future of Armenia is at high risk. Judging by the state debt of Armenia, which is steadily increasing, it is clear that the economic program presented by the government is crumbling, and there is no reason to hope that the situation will change for the better.

The latest data by the National Statistical Service of Armenia show that the state debt of Armenia, by late May 2017, amounts to $6.095 billion. A month earlier, this figure was 6.039 billion, that is, the debt has increased by 56.3 million in just a month.

Economists keep warning that the default is not far off, but the government continues to deceive the population by telling fairy tales about Karabakh and about how well Armenians will live in near future.

Because of it aggression policy and the long-standing Nagorno-Karabakh conflict, Armenia has no economic relations and transport links with Azerbaijan and Turkey. There are also difficulties in relations with Georgia that separates Armenia from its main economic partner – Russia.

The withdrawal of Armenian troops from the occupied Azerbaijani lands would be a real step towards a peaceful settlement of the Armenian-Azerbaijani Nagorno-Karabakh conflict and the improvement of Armenia’s economic situation. However, the longer Armenian government refuses to do so, the more Armenian society will split, while the socio-economic stagnation, and a sharp decline in living standards of the country will continue.

Famous Russian expert Dmitry Verkhoturov has commented on the current economic situation in Armenia in his recent interview with Day.az.

“It was predetermined that Armenia would start 2017 with many unresolved problems, because the Armenian economy was just one step away from recession in recent years, and it was clear that a significant slowdown in the economy would be inevitable,” Verkhoturov said.

The expert stressed that the unresolved Nagorno-Karabakh conflict, and consequently the isolation of the Armenian economy from numerous regional projects, are the core of economic problems of the country.

“Short-sighted policy of the ruling elites of the Armenian leadership has brought the country to the red line, to poverty and inevitable default. I believe that economic stagnation is likely to continue, as well as the outflow of population from the country,” Verkhoturov said.

Thus, the Armenian economy will continue to move into a hopeless abyss as long as the Armenian government pursues its desperate policy in the country and refuses to free the occupied Nagorno-Karabakh.