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Over the past ten years, Armenia experienced numerous economic challenges prompted by the 2008 financial and economic crisis, which was the worst economic downturn since the Great Depression of the 1930s in the US, economist Vahagn Khachatryan told a conference on Wednesday, summing up the country’s economic challenges and achievements over the past ten years. 

The economist did not agree with the claims that Armenia was left untouched by the 2008 economic crisis since it was not involved in global developments, adding no country could have escaped the crisis sweeping the world.

According to him, the crisis further aggravated the problems faced by Armenia, in particular the issues of low living standards, income polarization, unemployment, monopolies, corruption risks, migration and shadow economy. 

Speaking about the unemployment rate, Khachatryan said it has remained high at 16-19% since 2008. “I was expecting the unemployment rate to fall due to the 7,5 percent economic growth recorded in the country, however it remains unchanged according to the NSS figures. It turns out that every fifth person is jobless, with the unemployment rate standing at 40% among the youth,” the economist said.

He stressed the issue of tackling the unemployment must be Armenia’s key priority.

Chairman of the Informed and Protected Consumer NGO Babken Pipoyan, in attendance of the conference, said that Armenia has recorded significant progress in a number of spheres, which is improving the country’s international image.

“We have recorded a progress in media and speech freedom, as well as in the judiciary. This shows that if the economy were not in a steady grave condition, Armenia would not have such a terrible emigration rates,” he said.

Pipoyan added that although the country saw an economic growth of 7%, people do not feel any improvement since the value of the minimum consumer basket has increased by 7%. “They naturally do not feel that increase,” he said.