Tue, 29 April
13.1 C
Yerevan
USD: 389.46 RUB: 4.73 EUR: 441.92 GEL: 141.70 GBP: 519.38
spot_img

EBRD: Global financial crisis highlights need for further reforms in Armenia

YEREVAN, February 15. /ARKA/. The global financial crisis had a severe impact on Armenia highlighting need for further reforms, European Bank for Reconstruction and Development says in its Transition Report, which will be presented in Yerevan on February 16.

“The global financial crisis has underlined Armenia’s economic dependence on the remittance-financed construction sector. The switch to a floating exchange rate and subsequent depreciation of the dram has eliminated the exchange rate misalignment and helped to improve export competitiveness,” the report says.

However, to channel remittances and foreign direct investment (FDI) into a wider range of industries, the business environment needs to be improved through better enforcement of anti-monopoly measures and a reduction in the administrative burden on small and medium-sized enterprises (SMEs).

EBRD Principal Economist Helena Schweiger said, “Long-awaited improvements in the business environment must now be implemented to increase competition, attract more local and foreign investments and pave the way for a sustainable economic recovery.”

In 2010, the EBRD argues, Armenia should move from crisis management to stimulating long-term economic growth.

“The banking sector will play a key role and the Central Bank of Armenia must continue strengthening the local banks and increasing financial intermediation”, the EBRD said in its report.

According to National Statistical service of Armenia, GDP reduced 14.4% in 2009, compared with the previous year, to AMD 3165.5 billion. ($1 = AMD 381.12).-0—

spot_img

POPULAR

Euro exchange rate down 1 point, while US dollar and ruble up

The average market exchange rate of the U.S. dollar to the Armenian dram on April 25, 2025, rose by 0.77 points compared to April 23 and amounted to AMD 390.33.

Armenia may access $25 mln from the IMF under the SBA agreement in June

An International Monetary Fund (IMF) team led by Iva Petrova visited Yerevan from March 31 to April 10, 2025, to conduct discussions for the fifth review under the Stand-By Arrangement (SBA) with Armenia.

Armenia Enters Top 10 Countries in the World with Lowest Inflation in 2024 – IMF

Armenia was among the top 10 countries in the world with the lowest annual inflation in 2024. Such data is provided in an IMF study on 156 countries.

In Armenia, remittances have begun to recover after a 35% decline in 2024

On the demand side, average real wages in Armenia have increased in 2025, and net money transfers have shown an upward trend, contributing to consumption growth, according to the World Bank's Armenia Monthly Economic Update – April 2025.

Instruments for supporting SMEs in Armenia were discussed with bankers at the Ministry of Economy

Financial instruments for supporting small and medium-sized businesses (SMEs) were discussed by Deputy Minister of Economy of Armenia Lilia Sirakanyan and bank representatives.

LATEST NEWS

spot_imgspot_imgspot_img