Armenian Economic News
World Bank Sees Zero Growth In Armenia
By Ruben Meloyan
The Armenian economy will likely stop growing and could even contract
this year because of the deepening impact of the global recession, a
senior official from the World Bank said on Wednesday.
`I think at best one could expect flat growth,' said Aristomene
Varoudakis, head of the World Bank office in Yerevan. He pointed to
official statistics that showed Armenia's Gross Domestic Product
shrinking in the fourth quarter of last year.
The fourth-quarter drop explains why full-year economic growth in
Armenia slowed to 6.8 percent in 2008 after six consecutive years of
double-digit expansion. The economy is being hit increasingly hard by
recent months' fall in international prices for non-ferrous metals
and large-scale cash remittances from Armenians working abroad.
Varoudakis did not exclude that the worsened economic outlook may
force the Armenian government to revise its spending and targets for
2008 downwards. `It is very important for the budget to reflect the
economic situation so that the government, the National Assembly and
the public know what the necessary measures are,' he told journalists.
Meanwhile, the World Bank disbursed late Tuesday $85 million in loans
designed to help mitigate the global economic downturn's impact on
Armenia. The largest of these loans, worth $50 million, will be
provided to several Armenian commercial banks that will in turn lend
the funds to local small and medium-sized businesses in need of
credit. Another $25 million will be spent on the construction of
rural roads and other infrastructure, which is due to start this spring.
`These projects will support urgent local works that can be
implemented largely over this year to provide immediate employment
opportunities,' Asad Alam, a World Bank regional director, said in a
statement. `They will also help strengthen infrastructure
connectivity particularly in rural areas, meet business needs, and
upgrade social infrastructure that will foster medium-term growth and
improvement in living standards.'
The disbursed loans are part of at least $525 million in total
assistance which the World Bank has pledged to provide to Armenia in
the next four years. Officials have said that the bank's commercial
lending arms could raise the total to $800 million.
By Ruben Meloyan
The Armenian economy will likely stop growing and could even contract
this year because of the deepening impact of the global recession, a
senior official from the World Bank said on Wednesday.
`I think at best one could expect flat growth,' said Aristomene
Varoudakis, head of the World Bank office in Yerevan. He pointed to
official statistics that showed Armenia's Gross Domestic Product
shrinking in the fourth quarter of last year.
The fourth-quarter drop explains why full-year economic growth in
Armenia slowed to 6.8 percent in 2008 after six consecutive years of
double-digit expansion. The economy is being hit increasingly hard by
recent months' fall in international prices for non-ferrous metals
and large-scale cash remittances from Armenians working abroad.
Varoudakis did not exclude that the worsened economic outlook may
force the Armenian government to revise its spending and targets for
2008 downwards. `It is very important for the budget to reflect the
economic situation so that the government, the National Assembly and
the public know what the necessary measures are,' he told journalists.
Meanwhile, the World Bank disbursed late Tuesday $85 million in loans
designed to help mitigate the global economic downturn's impact on
Armenia. The largest of these loans, worth $50 million, will be
provided to several Armenian commercial banks that will in turn lend
the funds to local small and medium-sized businesses in need of
credit. Another $25 million will be spent on the construction of
rural roads and other infrastructure, which is due to start this spring.
`These projects will support urgent local works that can be
implemented largely over this year to provide immediate employment
opportunities,' Asad Alam, a World Bank regional director, said in a
statement. `They will also help strengthen infrastructure
connectivity particularly in rural areas, meet business needs, and
upgrade social infrastructure that will foster medium-term growth and
improvement in living standards.'
The disbursed loans are part of at least $525 million in total
assistance which the World Bank has pledged to provide to Armenia in
the next four years. Officials have said that the bank's commercial
lending arms could raise the total to $800 million.
WORLD FINANCIAL CRISIS BLIGHTED THE ARMENIAN JOB MARKET
PanARMENIAN.Net
23.02.2009 GMT+04:00
According to analysts' assessments, demand for specialists in PR,
marketing and graphic design will decrease dramatically.
The impact of the world financial crisis on the Armenian economy and
social state of people has already become perceptible, especially in
the population employment sector. The alarm has already sounded for
a number of employment agencies: employers' offers are decreasing in
ratio with the increasing labor supply.
/PanARMENIAN.Net/ According to the data provided by leading employment
agencies, the number of applications increased 3 times as compared to
the previous year. This is accounted for multiple stuff reductions
as well as the inflow of guest workers who decided to return to
their native country and wait till the crisis is over. Expressed
numerically, if the monthly employment ratio in the beginning 2008
equaled 10-15 potential employees, the figure dropped to 5 by the end
of the year. The demand is high for such specialists as: accountants,
marketing and PR specialists, web- and graphical designers. Yet,
according to recent assessments, the demand for marketing and PR
specialists and graphical designers will register a drop. According
to experts, if the first stage of crisis is characterized by the
employers' trying to cut down expenses via stuff reductions, the next
economizing attempt will affect the advertising sphere.
According to official data, the job market situation has been changing
since the end of 2008. Yet, if the first quarter of 2008 registered
a decrease in the unemployment rate (6.3% in 2008 as compared to 7%
in 2007), in the 3rd quarter of 2008 the number of unemployed totaled
74 900 in December and increased by 2.5% (73 000) as compared to
the beginning of the year, whereas in 2008 the economically active
population size totaled 1194 600. In the absolute expression, average
monthly nominal wage equaled AMD 91331 in 2008.
Viewed by different characteristics, the Armenian job market shows
an obvious disbalance. Women constitute 70% of total number of
unemployed. This is accounted for by a major emigration of able-bodied
population (basically, men) from Armenia. According to experts'
forecasts, the return of labor immigrants will also influence the
disbalance.
The ratio of unemployed to employed people is highest among those aged
40-50. The unemployment ratio among the youth constitutes 21%. Yet
according to PanARMENIAN.Net-conducted researches, the ratio will
keep dropping: a new tendency is observed among employees: while
previously they used to train their own personnel, the situation
is dramatically changed - they're now economizing on such projects,
giving preference to specialists with 15-20 years' working experience.
PanARMENIAN.Net
23.02.2009 GMT+04:00
According to analysts' assessments, demand for specialists in PR,
marketing and graphic design will decrease dramatically.
The impact of the world financial crisis on the Armenian economy and
social state of people has already become perceptible, especially in
the population employment sector. The alarm has already sounded for
a number of employment agencies: employers' offers are decreasing in
ratio with the increasing labor supply.
/PanARMENIAN.Net/ According to the data provided by leading employment
agencies, the number of applications increased 3 times as compared to
the previous year. This is accounted for multiple stuff reductions
as well as the inflow of guest workers who decided to return to
their native country and wait till the crisis is over. Expressed
numerically, if the monthly employment ratio in the beginning 2008
equaled 10-15 potential employees, the figure dropped to 5 by the end
of the year. The demand is high for such specialists as: accountants,
marketing and PR specialists, web- and graphical designers. Yet,
according to recent assessments, the demand for marketing and PR
specialists and graphical designers will register a drop. According
to experts, if the first stage of crisis is characterized by the
employers' trying to cut down expenses via stuff reductions, the next
economizing attempt will affect the advertising sphere.
According to official data, the job market situation has been changing
since the end of 2008. Yet, if the first quarter of 2008 registered
a decrease in the unemployment rate (6.3% in 2008 as compared to 7%
in 2007), in the 3rd quarter of 2008 the number of unemployed totaled
74 900 in December and increased by 2.5% (73 000) as compared to
the beginning of the year, whereas in 2008 the economically active
population size totaled 1194 600. In the absolute expression, average
monthly nominal wage equaled AMD 91331 in 2008.
Viewed by different characteristics, the Armenian job market shows
an obvious disbalance. Women constitute 70% of total number of
unemployed. This is accounted for by a major emigration of able-bodied
population (basically, men) from Armenia. According to experts'
forecasts, the return of labor immigrants will also influence the
disbalance.
The ratio of unemployed to employed people is highest among those aged
40-50. The unemployment ratio among the youth constitutes 21%. Yet
according to PanARMENIAN.Net-conducted researches, the ratio will
keep dropping: a new tendency is observed among employees: while
previously they used to train their own personnel, the situation
is dramatically changed - they're now economizing on such projects,
giving preference to specialists with 15-20 years' working experience.
40% OF ELECTRICITY TO BE PRODUCED BY NUCLEAR POWER
SECTOR IN ARMENIA BY 2025
ARKA
Feb 24, 2009
YEREVAN, February 24. /ARKA/. Armenia is to get 40% of its electricity
produced by the nuclear power sector by 2025, Armenian Deputy Minister
of Energy and Natural Resources Areg Galstyan said at a round-table
discussion with a Russian delegation from Sverdlovsk.
By the same time, renewable energy sector will be providing 30%
of energy produced in Armenia with the remaining share provided by
thermal radiation power sector, he said.
Galstyan reported that for this a number of strategic documents
were adopted based on four principles - nuclear power development,
maximal use of own renewable resources, diversification of routes of
energy resource supplies and maximal integration in regional energy
markets. He added that Armenia has also the obligation to close down
its current nuclear power plant (NPP).
Galstyan reported that a tender was announced for management of the
NPP closing-down process and a feasibility study was conducted.
The country is also taking measures to attract foreign investors in
its renewable energy sector, he said.
Midget power plants are expected to provide 5% of the overall volume
of energy produced in Armenia. Achievements in wind power sector are
less tangible, yet several licenses were issued for this activity,
Galstyan said.
The Deputy Minister said that Armenia is making attempts to move
forward also in=2 0development of geothermal power plants. In
particular, territory is assigned for construction of such a plant
and the issue is to be settled by the end of the year.
Armenian is underdeveloped in terms of biogas production, waste
recycling and wastewater treatment.
Energy savings field is also in its initial stage despite the
respective strategy developed by the government. Yet, use of energy
saving technologies will help Armenia save up to 15% of primary energy
resources, Galstyan said.
The Deputy Minister also reminded that Armenia had the most developed
export-orientated energy system in the South region and that it was
exporting 30% of its energy production. This structure is maintained
in Armenian energy sector despite the hard period.
"Our energy sector is one of the most developed ones both in
institutional and export terms on the post-Soviet area," Galstyan said.
Energy production totaled 6,114.3mln kilowatt-hours in Armenia in 2008,
which is a 3.7% increase against the level of 2007. Energy yield of
Armenian NPP was 2,461.6mln kilowatt-hours in January-December 2008,
which constituted 40.3% of the overall volume of energy production
over the period under period.
Heat stations produced 1,831.9mln kilowatt-hours or 30% of overall
production. Midget power plants generated 1,818.9mln kilowatt-hours
of electricity or 29.8% of the overall yield in the country.
ARKA
Feb 24, 2009
YEREVAN, February 24. /ARKA/. Armenia is to get 40% of its electricity
produced by the nuclear power sector by 2025, Armenian Deputy Minister
of Energy and Natural Resources Areg Galstyan said at a round-table
discussion with a Russian delegation from Sverdlovsk.
By the same time, renewable energy sector will be providing 30%
of energy produced in Armenia with the remaining share provided by
thermal radiation power sector, he said.
Galstyan reported that for this a number of strategic documents
were adopted based on four principles - nuclear power development,
maximal use of own renewable resources, diversification of routes of
energy resource supplies and maximal integration in regional energy
markets. He added that Armenia has also the obligation to close down
its current nuclear power plant (NPP).
Galstyan reported that a tender was announced for management of the
NPP closing-down process and a feasibility study was conducted.
The country is also taking measures to attract foreign investors in
its renewable energy sector, he said.
Midget power plants are expected to provide 5% of the overall volume
of energy produced in Armenia. Achievements in wind power sector are
less tangible, yet several licenses were issued for this activity,
Galstyan said.
The Deputy Minister said that Armenia is making attempts to move
forward also in=2 0development of geothermal power plants. In
particular, territory is assigned for construction of such a plant
and the issue is to be settled by the end of the year.
Armenian is underdeveloped in terms of biogas production, waste
recycling and wastewater treatment.
Energy savings field is also in its initial stage despite the
respective strategy developed by the government. Yet, use of energy
saving technologies will help Armenia save up to 15% of primary energy
resources, Galstyan said.
The Deputy Minister also reminded that Armenia had the most developed
export-orientated energy system in the South region and that it was
exporting 30% of its energy production. This structure is maintained
in Armenian energy sector despite the hard period.
"Our energy sector is one of the most developed ones both in
institutional and export terms on the post-Soviet area," Galstyan said.
Energy production totaled 6,114.3mln kilowatt-hours in Armenia in 2008,
which is a 3.7% increase against the level of 2007. Energy yield of
Armenian NPP was 2,461.6mln kilowatt-hours in January-December 2008,
which constituted 40.3% of the overall volume of energy production
over the period under period.
Heat stations produced 1,831.9mln kilowatt-hours or 30% of overall
production. Midget power plants generated 1,818.9mln kilowatt-hours
of electricity or 29.8% of the overall yield in the country.
WB TO GRANT $86.5 MILLION LOAN TO ARMENIA
PanARMENIAN.Net
25.02.2009 22:17 GMT+04:00
/PanARMENIAN.Net/ The World Bank Board of Executive Directors has
approved a $86.5 million loan to Armenia to alleviate impact of the
global economic crisis.
The loan maturity is 20 years with 10 years of grace period.
The loan targets implementation of 4 projects: social investments fund
($8 million), small agricultural and rural business ($2 million),
rural roads repair ($25 million) and Access to Finance for Small and
Medium Enterprises Project.
The Access to Finance for Small and Medium Enterprises Project
for Armenia totaling $50 million with a 26.5 year maturity and a 5
year grace aims to improve Armenian small and medium enterprises'
access to medium-term finance in an increasingly unstable global
financial environment, by improving the ability of farmers and rural
entrepreneurs to access markets and by stimulating market-oriented
private and public investments in rural areas. The major focus will
be to support the continued development of commercial activities
in the rural areas by improving market linkages, product quality,
competitiveness and capacity of Armenian rural entrepreneurs and
producers, the WB press office reports.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PanARMENIAN.Net
25.02.2009 22:17 GMT+04:00
/PanARMENIAN.Net/ The World Bank Board of Executive Directors has
approved a $86.5 million loan to Armenia to alleviate impact of the
global economic crisis.
The loan maturity is 20 years with 10 years of grace period.
The loan targets implementation of 4 projects: social investments fund
($8 million), small agricultural and rural business ($2 million),
rural roads repair ($25 million) and Access to Finance for Small and
Medium Enterprises Project.
The Access to Finance for Small and Medium Enterprises Project
for Armenia totaling $50 million with a 26.5 year maturity and a 5
year grace aims to improve Armenian small and medium enterprises'
access to medium-term finance in an increasingly unstable global
financial environment, by improving the ability of farmers and rural
entrepreneurs to access markets and by stimulating market-oriented
private and public investments in rural areas. The major focus will
be to support the continued development of commercial activities
in the rural areas by improving market linkages, product quality,
competitiveness and capacity of Armenian rural entrepreneurs and
producers, the WB press office reports.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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