Tag Archives: economy

Pashinyan says coronavirus has passed its peak in Armenia

JULY 30 (The Bulletin) — Armenian PM Nikol Pashinyan said that the peak of the coronavirus infection rate had passed in Armenia. Armenia’s daily new infection rate is now down to around 250, compared to 550 – 600 in mid-July. Government officials said that they expected a rate of 140 new infections daily by September and to be able to reopen schools which have been shut since March. Armenia has recorded 39,050 coronavirus infections and 754 deaths.

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— This story was published in issue 455 of the Central Asia & South Caucasus Bulletin, on July 31 2020.

— Copyright the Central Asia & South Caucasus Bulletin 2020

Armenia and Uzbekistan keeps interest rates steady

JULY 23/28 (The Bulletin) — The Central Banks of Armenia and Uzbekistan kept their interest rates unchanged, despite pressure to cut the cost of borrowing to help businesses fight an expected recession linked to the coronavirus pandemic. Armenia’s Central Bank said that despite deflationary pressures, its consumer price index still measured a 1.7% rise in prices over the past 12 months. 

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— This story was published in issue 455 of the Central Asia & South Caucasus Bulletin, on July 31 2020.

— Copyright the Central Asia & South Caucasus Bulletin 2020

Gas sales will prop up Azerbaijani economy – S&P

JULY 27 (The Bulletin) — Standard & Poor’s, the rating agency, said that extra gas sales from the Caspian Sea project Shah Deniz 2 will push up Azerbaijan’s GDP over the next few years, countering the impact of the coronavirus pandemic. It predicted GDP growth of 3.7% in 2021-23. Oil and gas sales generate 40% of Azerbaijan’s GDP.

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— This story was published in issue 455 of the Central Asia & South Caucasus Bulletin, on July 31 2020.

— Copyright the Central Asia & South Caucasus Bulletin 2020

China-led AIIB approves loan to Georgia

JULY 22 (The Bulletin) — The China-led Asian Infrastructure Investment Bank (AIIB) approved a 50m loan to Georgia to help it buy more PPE clothing to fight the coronavirus pandemic. Reuters reported that the loan was jointly financed by the World Bank and is the second AIIB loan to Georgia after a $100m loan was provided in May. Critics of the AIIB have said that China uses it to spread its influence.

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— This story was published in issue 455 of the Central Asia & South Caucasus Bulletin, on July 31 2020.

— Copyright the Central Asia & South Caucasus Bulletin 2020

German ratings agency downgrades Armenia

JULY 28 (The Bulletin) — Frankfurt-based ratings agency RAEX changed Armenia’s economic outlook status to stable from positive because of a growing government budget deficit, rising government debt and an anticipated recession. The downturn in outlook matches analysts’ predictions that the coronavirus pandemic will push the economies of the South Caucasus into recession.

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— This story was published in issue 455 of the Central Asia & South Caucasus Bulletin, on July 31 2020.

— Copyright the Central Asia & South Caucasus Bulletin 2020

New property tax in Armenia will hit the poor, says economist

JUNE 23 (The Bulletin) — A new property tax due to be introduced this year in Armenia will fall more heavily on the poor than on the wealthy, an economist said. PM Nikol Pashinyan, who frames his government and the 2018 revolution that propelled it to power as being on the side of the poor, wants the new tax to bolster the budgets of local councils, but economist Suren Parsyan told Open Democracy that the move will increase tax burdens for poor people who inherited apartments in central Yerevan when the Soviet Union collapsed.

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— This story was first published in issue 451 of the Central Asia & South Caucasus Bulletin, published on June 23 2020

— Copyright the Central Asia & South Caucasus Bulletin 2020

Turkmenistan opens border with Iran

JUNE 20 (The Bulletin) — Turkmen officials allowed 30 trucks stuck in Iran for 2-1/2 months after the country was closed as part of Turkmenistan’s push to incubate itself against the spread of the coronavirus to cross the border. According to media reports, Iranian officials are still waiting to process 740 more trucks that have been stuck at the border since April 1.

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— This story was first published in issue 451 of the Central Asia & South Caucasus Bulletin, published on June 23 2020

— Copyright the Central Asia & South Caucasus Bulletin 2020

Azerbaijan cuts interest rates

JUNE 19 (The Bulletin) — Azerbaijan’s Central Bank cut its core interest rate to 7% from 7.25% because of a drop in inflationary pressure. Like the rest of the region, Azerbaijan’s economy is expected to contract this year because of the impact of a lockdown designed to suppress the spread of the coronavirus.

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— This story was first published in issue 451 of the Central Asia & South Caucasus Bulletin, published on June 23 2020

— Copyright the Central Asia & South Caucasus Bulletin 2020

Armenian government declines gas price rise for consumers

YEREVAN/JUNE 19 (The Bulletin) — Consumers in Armenia will not pay any more for their gas despite a push by Russia’s Gazprom, the gas supplier, to increase prices after the Armenian Public Services Regulatory Commission ordered a price freeze.

The ruling is a victory for Armenian PM Nikol Pashinyan who has styled himself as the champion of the people since he was propelled to power in a revolution in 2018. 

In 2015, street protests against rises to electricity tariffs forced the government into an embarrassing u-turn and Mr Pashinyan was desperate not to stoke frustration now, especially with anger at the government’s handling of the coronavirus growing and the prospect of the economy tipping into a recession.

Quoting the Public Services Regulatory Commission, media in Armenia said that consumers would continue to pay a subsidised 139 Armenian drams per cubic metre of gas and vulnerable groups will pay 100 drams per cubic metre if their consumption does not exceed 600 cubic metres per year.

Instead, businesses that consume more than 10,000 cubic metres of gas per year and greenhouses will pay more for their gas, meeting some of the price rises that the Russian gas monopoly Gazprom had been asking for.

Earlier this month, Mr Pashinyan had proposed that the Kremlin-led Eurasian Economic Union unify gas tariffs across the region.

This was rejected by the Kremlin, though, which said it needed more price flexibility to react to global market moves.

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— This story was first published in issue 451 of the Central Asia & South Caucasus Bulletin on June 23 2020

— Copyright the Central Asia & South Caucasus Bulletin 2020

ADB says Georgia’s debt-to-GDP rate will soar

JUNE 19 (The Bulletin) — The Asian Development Bank (ADB) said that although Georgia has navigated through the impact of the coronavirus pretty well, so far, its debt-to-GDP ratio will still jump up to 62.5% this year compared to 44.5% last year. ADB country director, Shane Rosenthal, said that the economic downturn was also an opportunity for Georgian businesses to regenerate “more diversified and inclusive”. Georgia’s economy is set to contract by 5% this year because of the impact of the coronavirus.

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— This story was first published in issue 451 of the Central Asia & South Caucasus Bulletin, published on June 23 2020

— Copyright the Central Asia & South Caucasus Bulletin 2020