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Weak economic growth is caused by security issues, economist says

November 02 2023, 16:38

Macro-economic data prove that the growth of the economy has somewhat weakened, Lilia Amirkhanyan, the expert at the Hayatsk think tank, told Alpha News.

“It happened due to the base effect in 2022. As a result of the influence of external factors, Armenia’s economy was sensitive from March to April 2020, with very sharp increases, and we concluded the year with double-digit indicators. The rates were stable in the first quarter of 2023; however, in recent months, we have observed a weakening of the growth rate. In addition to the base effect, a very important factor is the developments in the trade, services, and construction sector, which initially ensured such high growth,” Amirkhanyan said.

According to the expert, weak economic growth is caused by security issues.

“When we look at the latest figures, we notice a weakening in the service sector, in the construction sector, and in the trade sector. One of the reasons is the developments taking place around the Republic of Artsakh. Generally speaking, weak growth is caused by security problems. Cash flow from abroad has significantly decreased, and this has had a direct impact on economic growth,” Amirkhanyan said.