Armenia Succeeds in Making Foreign Assistance into a Problem: Former PM

In 2011, there was a growth of 4.2–4.7% with an inflation of 4.5% in the global economy. The European zone will close the year with a 1% growth with a 2% inflation; the US, 1–15% economic growth; Japan, 2%; Russia, 4% growth with 8–8.5% inflation; and Armenia will register a 4% economic decline, though the Armenian government will record a 4% increase, former prime minister of Armenia Hrant Bagratyan informed journalists in Yerevan today.

“In 11 months we’ve had a 7.9% increase, instead of the 4% set by the budget, and most importantly, the indicator of poverty in Armenia is 35%; the ‘inflation of poverty’ is 12.5%,” he said.

According to the economist, the Armenian government at the start of the year promised to maintain 4% economic growth, while what we have is an economic decline.

“It was one of the government’s promises on executing the next budget. Though I have no hope that it will ever enter our government ‘s head that [money] transfers can’t be brought from abroad and spent in the economy [i.e. a situation where there is only expenditures and no investments], because then the assistance given by the diaspora becomes the only problem to not developing the country. You can’t turn assistance into a problem… In 11 months, there was 103.1% recorded, but let’s not forget that in 10 months inflation went from 4% to 8.5%; that is, it was mandatory for the budget to have been executed by 4.5% more so that we could actually consider the budget fulfilled,” he said.