Former RA Prime Minister, economist Hrant Bagratyan doesn’t exclude the continuation of the global economic crisis and if so, foresees that the crisis will hit Armenia in September-October. According to him, if the government is smart, it will put an end to the devaluation of the euro. “Armenia must purchase Euros now and sell it when the dram starts devaluating. The government is not doing this and is letting the dram go down. Nobody needs that and will lead to shifts in the value market which will not allow business to grow.”
According to Bagratyan, the Armenian government is currently interested in creating an image according to which the dollar is close to 400 drams and not hurt oligarchs. “The oligarchs live by imports and don’t care about exports.”
Hrant Bagratyan doesn’t approve the predictions for Armenia’s economic growth by international organizations. “In 2009, the economic downfall was so huge that if the government doesn’t take any action, it will have a 10-12 percent growth. Unfortunately, they are going to take some actions, but wrong because their goal is to protect their businesses. In reality, yes, there can be 2.5-3 percent growth. They will present it in the range of 5-8 percent because the statistical service is currently ascertaining the inflation.”
The former prime minister is certain that the Armenian government will later be forced to pay a higher price for his steps.
“Who can I explain it to?” said Bagratyan, noting that RA Prime Minister Tigran Sargsyan is using incorrect economic terms. “Tigran Sargsyan is wrong when he says oligopoly determines Armenia’s economy. Armenia’s economy is based on monopolies. Two people determine everything concerning petroleum, aviation exchanges are a monopoly, there are three communication operators and it is a little like an oligopoly.”
Head of IMF Armenia Mission Mark Louis also evaluated Armenia’s economy as an oligopoly. “Louis also explained that Armenia’s economy is more like an oligopoly, rather than a monopoly. What are the young people doing? They come and don’t do anything after two years. We have been involved for the past 20 years. He is supposed to have a “nice story”. Armenia shouldn’t be inspired by somebody heading and reaching success,” said Hrant Bagratyan.
How can average citizens protect themselves from the economic crisis? In response to that, Bagratyan told “A1+”: “If they have savings, even 1,000 dollars, they should purchase precious metals, not gold, but platinum or precious works of art. Their prices have gone down, but they will go back up again over time.”
