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How is Armenia's economy improving? Or is it?


Vera

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Is Armenia's economy really improving compared to other post-soviet nations? Kocharian's party likes to brag about the advances but are these advances really considered an improvement from a global prospective? I'm afraid it just seems to us that there are improvements but in reality it should have been much better. Any ideas?
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You are right Vera jan... There should've been 6 more years of improvements... they started improving the last 2 years... it's the system, that's how it always works, the last 2 years you show that you care, get elected then another 6 years of eating and sleeping!!!
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Ashot jan Armenian president serves for 5 years. But isn't it like that everywhere? Politicians only remember us when they need to get reelected. Also, I read somewhere that Armenia's GDP has reached its 1988 mark and was growing. I'll try to find the link.
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Is Armenia's economy really improving compared to other post-soviet nations? Kocharian's party likes to brag about the advances but are these advances really considered an improvement from a global prospective? I'm afraid it just seems to us that there are improvements but in reality it should have been much better. Any ideas?

 

You can't really rely on the statistics of these post-Soviet republics to compare their economies. But there definitely is an improvement in the living standards of an 'average' Armenian compared to the 90-s. I don't know how sustainable this is - a major chunk of the Armenian growth is financed by transfers from immigrant workers abroad. This has resulted in a 'Dutch Disease' - strong local currency that makes local production unprofitable due to strong currency.

 

But even with the strengthening currency the inflation is high. Just this week there was a large spike in food prices.

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But even with the strengthening currency the inflation is high. Just this week there was a large spike in food prices.

 

You make it sound that this inflationary surge happened in Armenia alone...!

 

However if you care to check around, Turkey, France, UK, USA..... Asia,.....Africa etc; you will notice that this is a global phenomenon... prices are surging on account of the artificial surge of the price for energy, mainly(OIL).

Wheat is up everywhere, hence the rest of the food chain is following this trend.

 

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