Independent and cutting-edge analysis on Turkey and its neighborhood

The article discusses the impact of the global financial crisis on the Armenian economy. It outlines the factors which allowed Armenia to largely surpass the direct impact of the global financial crisis. The slowdown of the Armenian economy was caused mostly by the decline in remittances from Russia, shrinking of the construction sector and reduced FDI inflows. As a result, Armenia increased its external debt, requesting assistance from Russia, the Asian Development Bank, IMF and World Bank. Despite its negative impact, the global financial crisis offers an opportunity for Armenia to make sound changes and start the process of de-linking political and economic powers. Unfortunately, it is unlikely that this opportunity will be seized.

 

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