Euromedia24 on Play Store Euromedia24 on App Sore
BNB

$590.36

BTC

$83859

ADA

$0.733916

ETH

$1916.34

SOL

$132.93

11 °

Yerevan

2 °

Moscow

30 °

Dubai

2 °

London

4 °

Beijing

-1 °

Brussels

18 °

Rome

1 °

Madrid

BNB

$590.36

BTC

$83859

ADA

$0.733916

ETH

$1916.34

SOL

$132.93

11 °

Yerevan

2 °

Moscow

30 °

Dubai

2 °

London

4 °

Beijing

-1 °

Brussels

18 °

Rome

1 °

Madrid

Ananyan: Disruption or collapse of the country's economic life can lead to the risk of state collapse


"In the presence of a weak political infrastructure and the absence of an efficient management system, the disruption or collapse of the country's economic life can lead not only to social and political problems, but also to the danger of the collapse of the state", writes former SRC chairman Davit Ananyan and elaborates.

"The analysis of some of the factors and indicators listed below indicates the possible vulnerability of our country's economy and the lack of guarantees for the long-term economic and political future.

1. Predominance of the non-exportable sector in the GDP, in conditions of limited domestic gross consumption. The sectors providing economic growth in the GDP structure are the non-exportable sectors aimed at satisfying domestic consumption (trade, services, construction, etc.).
The low level of domestic consumption in a country with a small and low-purchasing population limits the market and opportunities for economic growth. Such a situation makes the economy unstable and resistant to internal and external shocks.

2. Lack of developed industry. The main "traditional" exportable sector of the economy is mining, which accounts for 3-4% of GDP. At the same time, the manufacturing industry accounts for 11-13% of the GDP, the rate of development of which mainly depends on external factors, in particular, temporary re-export opportunities. The presence of an underdeveloped industrial base, a re-export factor and "mineral" exports increase the dependence and vulnerability to fluctuations in world prices of raw materials, while at the same time testifying to the weakness of domestic production.

3. Negative foreign trade balance. 2024 The negative foreign trade balance for eight months was 2.3 billion US dollars. A significant foreign trade deficit indicates the country's dependence on imports and, by and large, leads to a drain on foreign exchange reserves, which increases financial risks.

4. High level of debt. State debt in 2024 as of the end of August is 12.5 billion US dollars or 51% of the GDP (it is predicted that it will grow to 55% by the end of 2027). The high level of public debt to GDP indicates the existence of a significant debt burden, which limits the opportunities for infrastructure development and investment in social programs.

5. Low investment in research and development (R&D) and technological advancement. The level of investment in R&D and technological development in our country is extremely low, which limits the innovative potential and competitiveness of the economy, negatively affecting long-term growth prospects.

6. Very low level of economic diversification. Diversification of the economy in the "qualitative" sense, in fact, does not exist. Lack of diversification increases the risks associated with an economy's dependence on a few key sectors. The lack of such diversification makes the economy more sensitive to external and internal shocks.

7. Low-quality state administration and institutions. The quality of public institutions and public administration is extremely low, which affects the country's ability to sustain internal development and withstand external shocks. Weak state institutions limit the effectiveness of economic policy and the ability to manage the process to respond to challenges and maintain stability. Thus, our country's economy is vulnerable due to a limited domestic market, high dependence on imports and debt, a weak industrial base and low investment in technology. Low levels of research and development (R&D) investment and the lack of "qualitative" diversification of the economy limit potential sources of long-term sustainable growth.

In the conditions of political instability, the high level of public debt and the poor quality of governance can lead to economic and social collapse, which in turn creates risks not only for political stability, but also for the future of the state."

News

Italy, Greece, Poland and Brazil have welcomed the end of the negotiations on the RA and Azerbaijani peace agreement
In Moscow has been arrested by Interpol criminal
A mass attack on the Russian Volgograd region has taken place
A Turkish citizen arrested in Yerevan has kept himself as the Lord with his servants
Important
Who is the leader in Parakar's local elections?
Oil prices have risen
A red level of danger has been declared in Italy
Important
Another trouble by the government
Who did they do about Garnik Danielyan?
The Turkish citizen was cursed and disrespectful to the hotel in Yerevan. He has been arrested
Important
Straight. Bishop Bagrat's conversation with the people
The UAE welcomes the end of the talks between Armenia and Azerbaijan
The issue of transferring the body of Artsakh resident Vera Aghasyan has not been decided yet. NSS. Sputnik
Important
The maternity hospital of "Armenia" MC has been moved to a 40-day body body. Shamshyan
While you were busy allegedly under the "Peace" agreement, the authorities increased the RA public debt by $ 750 million. Hrayr Kamendatyan
The immoral facility of the government is not new, there is a question of human destiny under the post of lawsuits against Baku. Tigran Abrahamyan
The authors of all this wants power again from the people of Gyumri. Edgar Ghazaryan reminds
The South Caucasus under geopolitical rehabilitation. What is the most favorable version for Armenia? "Fact"
The demand for the parents of the missing. "Hraparak"
"Rope" of universal declaration, to the throat of the public. "Fact"

More News

...

Armenia has officially received fish and export fish farms (video)

The government rejected the proposal to cancel the income declaration system of individuals

New decision for people with unreliable loans

Bacteria of the Gun Cooperial Group was found in the "Ideal" type of pastry pastry

Agricultural insurance has failed, the executive will take the burden on him 70-80% this year. Minister (video)

Armenia once again registers a negative balance with Georgia in the field of electricity trade

There will be significant reduction in foreign trade in the next few months. economist

The State Revenue Committee expressed details on the remnant of the quota quota of the customs duties of the electric carpeople

The bank has provided 8 million 560 thousand drams without a physical presence. The citizen is faced with a problem (video)

In the near future, Armenia's economic activity will be significantly lower than in 2024. Luys Foundation

Do you agree with the statement of the country that the average salary in Armenia exceeds inflation for decades? economist

The government will pay $ 150 million in a budget loan to "Lydian Armenia" to operate Amulsar

Inflation was 25.3% on 2018. The growth of salary is about 40% more than inflation. Pashinyan (video)

In 2024, 5.9% GDP growth was registered, the number of jobs increased by 36.6% compared to 2018. Pashinyan (video)

Large amount of money has been allocated from the state budget to develop the pages of the Prime Minister's staff

Wheat sowing areas have been reduced. What problems will the villagers face? (Video)

Beneficiaries of pension funds have the opportunity to choose between existing funds. Tsovinar Vardanyan

Armenia's foreign debt is $ 5 billion 962 million, not $ 12 billion. Gorg Papoyan (video)

An elderly man must pay his entire pension in property taxes to be able to live in his apartment in the center. Tadevos Avetisyan (video)

What income of a citizen will the State Revenue Committee tax (video)