CBA former President says oligopoly main cause for 18% economic decline

ANC Economic Commission member, CB Armenia former President Bagrat Asatryan is convinced that the economic decline will continue in Armenia in 2010. The index will reach 2%, he told reporters today.

He forecasted growth in the sphere of construction and sharp decline in the spheres of trade, service and industry.

“The budget discussions are under way now and I regret to say that I have observed no serious approaches so far. I have seen no guarantees that the economic decline will be prevented in Armenia next year,” he said.

Saying the 18% decline to be a world record, B. Asatryan noted that the index will undergo no serious changes by the yearend and even in case of positive tendencies, the final index this year will count as much as 13.4%. However, Asatryan highlighted that the authorities and the CB make no optimistic forecasts and this provides him basis to state that the economic decline will go even deeper.

18% economic decline for 99% has been caused by the domestic problems, particularly by oligopoly, and these require certain measures to be regulated, Asatryan said.

“Armenia’s economy has reached a point when drastic changes are needed,” he concluded.