By Alexander Tagvoryan

YEREVAN, September 17 – The Republic of Armenia will complete the year with positive economic indicators, but it is unlikely to be able to make up all the losses from 2009, the President of Armenia Serge Sarkisian said.

“Unfortunately, everything isn’t going smoothly now, too. Nature doesn’t pamper us, and though we had a 12 percent growth in industry, we also had a 25 percent recession in agriculture. This year, we lost the entire crop of apricots and other fruits. There were some problems with grain, too, but, nevertheless, we had nearly a 7 percent growth during these six months. And I think that we will complete this year with positive indicators, although we are unlikely to be able to make up all the losses of 2009,” said the Armenian President during his interview with the Ukrainian newspaper “Profile.”

According to Sarkisian, the global financial crisis has made many changes in the plans of the republic.

“For almost 10 years, the economy of the Republic of Armenia was measured with in the double-digits. Our national debt was small, and the macroeconomic performance was very good. But the isolated position, the absence of favorable transport infrastructure has always been a problem, and, unfortunately, our economy has not been sufficiently diversified,” he said.

Sarkisian also said that the economic indicators in Armenia grew thanks to the building construction and the funds that come from Armenians living abroad.

“Because of the effects of the global crisis and the fact that many people panicked, we had a very heavy blow to the economy and lost 14 percent of our GDP. But even in this situation, we didn’t cancel even a single social program, and there was no delay for pensions, social benefits and salaries,” said the president.

“Maybe the fact that Armenia has had a market economy for a long time and has a more or less favorable investment climate, the stability of the banking system and the spirit of enterprise of Armenians help us to make up the losses of the previous year,” he added.

Yerevan Report