Karabakh war to trigger economic crisis in Armenia

  03 November 2020    Read: 427
 Karabakh war to trigger economic crisis in Armenia

Fears are growing that Armenia will face an economic downturn in 2021, warns the article published in the Armenian newspaper Irates, AzVision.az reports. 

"Yesterday, the Armenian parliament started discussing the draft budget for 2021. The officials linked the uncertainty in the financial and economic document with the current military situation. It should be noted that before that, another invisible "enemy" - the coronavirus - hit our economy hard. And now the war has inflicted another blow on our economy. Therefore, as officials claim, 2021 will be a very difficult year for Armenia”, the article says.

The article also quoted Deputy Prime Minister Mher Grigoryan who stated that the coming year will be especially different for predicted economic difficulties. 

”However, I am confident that we will be able to form a budget that will take into account all possible risks and problems," Mher Grigoryan said.

The article also highlights that no "revolutionary" development has been observed in Armenia's budget over the past two years  with the exception of the impact of the current negative political processes on the economic situation: “The budget has fallen into a quagmire of the coronavirus and it is impossible to get out of it."

"Here comes the next big and unexpected blow - the war. It is difficult to say how many years it will take the Armenian economy to recover from its outcomes. But it is clear that at least a strong "injection" is needed to rise again. Today, only foreign debts can save us. Mayor Grigoryan did not rule out that public debt will continue to grow. The Deputy Prime Minister is right, it is possible to make progress through hard work. However, he forgot to add that we need specialists who understand the economy in real life and have a deep knowledge of this field, not on Facebook", the article reads.

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