Crisis Impact on Armenia

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Crisis Impact on Armenia

• Aram Gharibyan,
• Adviser to the Prime Minister of Republic of
  Armenia

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Crisis Impact on Armenia

• Crisis impact on Armenia in figures
• Pre-crisis economic developments in Armenia
• Possible steps to cope with the crisis

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Crisis impact on Armenia in figures
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Pre-crisis economic developments in Armenia
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Pre-crisis economic developments in Armenia

• States minimal involvement in the economy
• Rapid growth of real estate prices
• Flow of investments and credit resources to the
  construction sector for quick and high return
• State did not put enough effort to balance growth
  among different sectors of the economy

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Pre-crisis economic developments in Armenia

• Low speed of tax and customs administration
  reforms for improvement business climate in
  Armenia
• Underdevelopment of export promotion financing
  instruments and not very simple exporting
  procedures
• Low speed of implementation of corporate culture
  in the state owned enterprises

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Possible steps to cope with the crisis

• Minimizing crisis impact on vulnerable groups of
  population
• States significant involvement in the economic
  activities
• Coordinated monetary and fiscal policies to
  generate liquidity in the economy and direct it
  to the companies with the export potential and
  systemic enterprises
• Support small and medium enterprises and start up
  businesses

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Possible steps to cope with the crisis

• Speed up tax and customs administration reforms
• Simplify export procedures
• Minimize tax legislation amendments
• State supported big infrastructure development
  projects implementation

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Crisis Impact on Armenia

• Let us concentrate on opportunities that
  crisis has created and develop ambitious projects
  to benefit from the crisis and do not focus only
  on minimizing crisis impact.
• Attack is the best method of defense!