Armenia's economic crisis deepening

By AzerNews

Armenia is struggling with a considerable decline in money transfers, which will deteriorate its seriously ill economy.

"Money transfers in March-April declined by more than 14 percent," the Central Bank reported. This comes as the bank earlier predicted a rise in money transfers by 4.5-6.5 percent in 2014.

Armenia's poor economy has been facing the unpleasant trend since the beginning of 2014.

Figures show that, the private transfers increased only by 0.6 percent in April, while this indicator was 9.2 percent during the first months, and 1.4 percent in March.

Local media reported that the volume of external transfers may fall further during the next few months, if such tendency continues.

Comparing these figures with those published recently by the National Statistics Service, local media say the overall situation is deteriorating in Armenia.

Armenia achieved a 3.1 percent economic growth during the first quarter of 2014, which is almost twice less compared with the same period of 2013. The economic growth was 7.1 percent in 2013 compared with the same period of 2012.

The Central Bank is not optimistic that the government will be able to ensure the projected five percent economic growth in 2014.

Slowdown in Russia's economic growth has begun to adversely affect the Armenian economy, particularly where exports, investment, and private remittances are concerned.

The International Monetary Fund (IMF) believes that Armenia's new government is not capable of ensuring a five percent economic growth in 2014. Growth rate will be lower than 4.2 percent, the fund predicted.