Armenia's Economic Pulse

[Mher]

Re: Armenia's Economic Pulse

Armenia’s consumer prices fell by 0.8% in May

YEREVAN, May 31. /ARKA/. Consumer prices dropped by 0.8% in Armenia in May compared to the month before, mainly due to 1.4% decrease in food prices (including tobacco and spiritual drinks), ArmStat reported.

Prices for nonfoods rose by 0.3% and service prices fell by 0.2% in May, according to the report.

Consumer price index was 103.6% this May against the same period of the year before. Index for food prices (including for tobacco and alcoholic drinks) was 101.9%, for nonfoods – 102% and for services – 107.8%.

Planned inflation level is 4% (±1.5%) under the 2014 budget.

- See more at: http://arka.am/en/news/economy/armen....aDb67dMk.dpuf

[Haykakan]

Re: Armenia's Economic Pulse

IRAN SEEKING FUNDS FOR CONSTRUCTION OF ANOTHER JOINT ELECTRIC MAIN WITH ARMENIA

YEREVAN, June 3. /ARKA/. Iran will find funds for construction of
the third Iran-Armenia electric main in the near future to ensure
delivery of Armenian electricity to Iran in exchange for gas supplied
to Yerevan Heat Power Plant, Armenian deputy minister of energy and
natural resources Ara Simonyan said.

The delay in implementation of the project occurred due to the
situation around Iran and economic problems, as well as because of
the difficulties in transferring money between the two banking systems
due to sanctions over Iran, the deputy minister said.

"It looks like both problems are already overcome, and the newly
appointed minister of energy Yervand Zakharyan is expected to visit
Iran in the next month. We would also like to have a complex discussion
about the issue at the meeting of Armenian-Iranian intergovernmental
commission', Simonyan said at a 2013 budget execution hearing in
the parliament.

The deputy minister expressed hopes the forthcoming visit will help
solve the funding problem. At least, Iran's willingness to do it is
obvious, he said.

Simonyan also said the total cost of the project is 107.9 million
euros, including 27.5 million euros to be provided by the Armenian
side.

The deputy minister stressed the construction of the third Iran-Armenia
electrical transmission line is an important regional cooperation
project in energy sector. So is the construction of an electric main
toward Georgia, with KfW having provided 75 million euros in loan
and a grant worth 2 million for the project, Simonyan said.

The construction of the electric main from Iran to Armenia is
implemented by Sanir Iranian company that was granted tax and customs
privileges by the Armenian government. The construction will be funded
by the Export Development Bank of Iran. -0--

[Haykakan]

Re: Armenia's Economic Pulse

MAHAN AIR ADDS ARMENIA TO ITS NETWORK

Anna-Aero
June 4 2014

Over 100 VIP guests including high ranking officials from the Armenian
Civil Aviation, Yerevan Airport and travel trade professionals were on
hand to celebrate the opening of Mahan Air's new route between Tehran
and Yerevan. The first inbound flight operated with a 100% load factor.

Mahan Air has started thrice-weekly flights between Tehran (IKA) and
Yerevan (EVN) on 1 June. Operated by the airline's 185-seat A310s,
the 793-kilometre sector will see Mahan Air face competition from
incumbent Iran Aseman Airlines, with its four times weekly operation.

"We strongly believe that the convenience of our non-stop flights
from Tehran together with the connectivity options to the Middle East
and Far East destinations will further facilitate a great boost for
business and leisure visitors between our two countries of Iran and
Armenia," said Hossein Hosseini, Director of Marketing and Route
Development at Mahan Air.

http://www.anna.aero/2014/06/04/mahan-air-adds-armenia-network/

[Haykakan]

Re: Armenia's Economic Pulse

ARMENIA AND RUSSIA ASSISTING GEORGIA

The Messenger, Georgia
June 9 2014

By Messenger Staff
Monday, June 9
Georgia is carrying out serious rehabilitation work to reconstruct
the main highway which was damaged in Dariali gorge due to the May
17 landslide.

The disaster has led to the deaths of several people, as well as to
the destruction of the road and infrastructure.

The Georgian side has been working hard since May 17. The rescue
operation was carried out and the rehabilitation efforts are underway,
apart from human losses the country suffered serious economic loss
as well.

The restricted movement on the road has caused serious damage to
businesses not only in Georgia, but in Russia and Armenia as well.

Larsi checkpoint near the Dariali gorge is the only land connection
of Armenia to its strategic partner Russia.

Armenian leadership has contacted the Russian government to discuss
the possibility of assisting Georgia in the reconstruction of the
damaged highway, as this negatively influences the trade turnover
capacity between the two countries. It was suggested to Georgian
authorities that Armenia and Russia were ready to participate in
the reconstruction efforts. First the Russian side will create a
working team to study the situation on the ground and prepare the
recommendations for further steps.

http://www.messenger.com.ge/issues/3132_june_9_2014/3132_econ_one.html

[Haykakan]

Re: Armenia's Economic Pulse

ARMENIA JOINS TOP TEN EMERGING MARKETS FOR RETAILERS: AZERBAIJAN IS ON LAST PLACE

19:28 30/06/2014 >> ECONOMY

According to Global Retail Development Index Armenia is among the
top ten emerging markets for retailers. The study is posted on the
international organization "A.T. Kearney."

This year Armenia is on the second place, ceding only to Chile,
China, Uruguay, the United Arab Emirates and Brazil. Azerbaijan has
registered the worst rate, it is ceding such countries as Botswana,
Morocco, Namibia and Vietnam.

Georgia lags behind Armenia by one position and is on the seventh
place. Kuwait, Malaysia and Kazakhstan are also among the top ten
countries.

Overall, the study includes 30 developing countries. The political
risks, population, market saturation and retail sales are assessed.

It is noted that Armenia's GDP is increasing rapidly, which along
with the weak market saturation makes the country more attractive to
retailers. In addition, the government is taking measures to attract
foreign companies. Some Western retailers have already started to
explore the Armenian market, the document reads.

Source: Panorama.am

[londontsi]

Re: Armenia's Economic Pulse

ARMENIA JOINS TOP TEN EMERGING MARKETS FOR RETAILERS: AZERBAIJAN IS ON LAST PLACE

19:28 30/06/2014 >> ECONOMY

According to Global Retail Development Index Armenia is among the
top ten emerging markets for retailers. The study is posted on the
international organization "A.T. Kearney."

This year Armenia is on the second place, ceding only to Chile,
China, Uruguay, the United Arab Emirates and Brazil. Azerbaijan has
registered the worst rate, it is ceding such countries as Botswana,
Morocco, Namibia and Vietnam.

Georgia lags behind Armenia by one position and is on the seventh
place. Kuwait, Malaysia and Kazakhstan are also among the top ten
countries.

Overall, the study includes 30 developing countries. The political
risks, population, market saturation and retail sales are assessed.

It is noted that Armenia's GDP is increasing rapidly, which along
with the weak market saturation makes the country more attractive to
retailers. In addition, the government is taking measures to attract
foreign companies. Some Western retailers have already started to
explore the Armenian market, the document reads.

Source: Panorama.am

I think the person who wrote this article cannot differentiate his arse from his elbow.

A country in which 30 to 40 % of the people live below the poverty line, that is Armenian poverty criteria,
to talk about retail boom is a destructive criteria not something to look forward to.

A healthy Retail boom happens when there is full employment the people are confident etc.etc

Only yesterday there were demonstration about the rise in the price electricity and complaints as to how the poor will manage to pay.

Compounding that we are now apparently importing electricity from Georgia.
Considering that we were exporters of electricity, shows how the rot is taking its destructive course.


.

[londontsi]

Re: Armenia's Economic Pulse

I think the person who wrote this article cannot differentiate his arse from his elbow.

A country in which 30 to 40 % of the people live below the poverty line, that is Armenian poverty criteria,
to talk about retail boom is a destructive criteria not something to look forward to.

A healthy Retail boom happens when there is full employment the people are confident etc.etc

Only yesterday there were demonstration about the rise in the price electricity and complaints as to how the poor will manage to pay.

Compounding that we are now apparently importing electricity from Georgia.
Considering that we were exporters of electricity, shows how the rot is taking its destructive course.


.

We need industrial ( and agricultural ) growth not retail boom.

.

[Haykakan]

Re: Armenia's Economic Pulse

We need industrial ( and agricultural ) growth not retail boom.

.

Retail boom makes sense when you consider Armenia has thriving tourism industry plus there is an Armenian disease called "i have to have that brand named thing". The retail sector does provide jobs and opportunities so it is a good thing. It does not provide as many good paying jobs as industrial jobs would but it is still a good thing not a bad thing. There is no good reason to take positive news and to put a negative spin on it.

[Haykakan]

Re: Armenia's Economic Pulse

SOLAR POWER NOT TOO DEAR FOR FAR-SIGHTED INVESTORS - OPINION

10:19 * 02.07.14

Investments in solar energy projects are not absolutely too dear
against the backdrop of the surge in natural gas and electricity
prices, says the chief of an Armenian company engaged in the production
of alternative power.

Artin Melikyan, who heads the closed joint-stock company Solar,
says he believes investments in alternative energy production will
fully meet all expectations in about six or seven years' time. "What
now seems dear is very relative, so I don't think it is an expensive
pleasure for a far-sighted client. Expensiveness is very relative
given the surge in the natural gas and electric power [prices], and
all the risks stemming from our status as an energy importer. And the
considerable increase in orders by both individuals and businessmen
testify to what I say," he noted.

Melikyan said he doesn't expect any state support to such an
initiative. "I don't think there will be any state assistance, because
don't believe the government bodies in Armenia will have that will,
being under the pressures of the gas-supplier and manufacturer. I
think it is an open secret to all that they import gas from Russia
and distribute electric power through networks," he said, stressing
the importance of investments that would help lower the costs of
alternative energy supplies.

Melikyan even brought the example of Iran which abolished the import
taxes for alternative energy supplies. "The solar batteries, which
Armenia imported at a zero tax rate until three years ago had later
to be imported with a 20 percent of value added tax as a result of
energy reforms adopted. So the price increased by 20 percent. The
only thing the state can do is to lower the import taxes. Secondly,
it can grant income tax privileges to such companies. That's to say,
it can lower or abolish the taxes," he noted.

Armenian News - Tert.am

[londontsi]

Re: Armenia's Economic Pulse

Retail boom makes sense when you consider Armenia has thriving tourism industry plus there is an Armenian disease called "i have to have that brand named thing".

Retail booms follows economic growth and reduced unemployment which results in confident population who indulge in the “luxuries” of life.
That is a healthy development of the economy. No sensible person would be against that.

The retail sector does provide jobs and opportunities so it is a good thing. It does not provide as many good paying jobs as industrial jobs would but it is still a good thing not a bad thing.

There is also another Retail boom which is engineered by governments to cover for their failed economic policies. Universally.

It creates economic activity and an opportunity for some to have a feel good factor.

It works in the short term with a heavy penalty following it.

No different than giving giving a bottle of whisky to a drunkard so he leaves you alone.

There is no good reason to take positive news and to put a negative spin on it.

Those imported goods have to be paid for with foreign currency. So how will they be paid for ..... more debt.

What did the economy gained after that .... nothing .... just a hangover