Armenians live in poverty, while economic indicators worsen

Agrowing number of Armenians are living in poverty, according to the data of the Armenian National Statistical Service.

The official data shows that the total number of poor in 2015 amounted to about 900,000 people. It means that almost every third resident of the country is poor. In this context, pensions and benefits are vital for Armenia’s population, Hetq.am reports.

The surveys of the NSS show that pensions are the source of income for 54 percent of households in Armenia, and family benefits are such a source for other 13.5 percent. Thus, for many people in Armenia pension and benefits are the main sources of income.

Accordingly, in case pensions and benefits are no longer paid and the population failed to find other sources of income, then the poverty rate in Armenia will increase from 29.8 to 43.7 percent - almost half of the country’s population.

Moreover, the unemployment rate in the country is highest among the CIS states – it made up 18.4 percent in the second quarter of 2016. Therefore, daily Armenians hold protests demanding to open new jobs, while others can find no other way but to leave the country.

All this is certainly linked with the economic situation in Armenia, which is doleful. “Armenia will have zero growth of economy in 2016, or possibly a recession,” Tigran Jrbashyan, former Chairman of the Board of Directors of the American Chamber of Commerce in Armenia, told ARKA.

“If the GDP growth will make at least 0.5-1 percent, we will consider that a success. However, I think it will be worse,” he added. Jrbashyan predicted that early next year will also be challenging.

Another bad news for Armenians relates to the national debt of the country. Thus, this indicator is expected to equal $6.25 billion by the end of 2017, Armenian Minister of Finance Vardan Aramyan said at the Armenian Parliament on November 30.

"By the end of the current year, the figure is expected to reach $5.85 billion."

Overall, it is obvious that the Armenian economy is stuck in problems and does not have positive prospects for near future. The current Armenian government is to blame for bringing the country into such a situation.