Before claiming that the crisis has been overcome, one has to take the following key factors into account: the GDP, financial system’s indicators, including the attitude to and confidence in the system, interest rate behavior, unemployment level and living standards, Artsvik Minasyan, the Parliament member of the Armenian Revolutionary Federation (Dashnaktsutyun) (ARF(D)), told reporters on April 5.

According to him, the country cannot be said to have overcome the crisis with only one of the factors, namely, GDP being up. “This is false progress if it does not influence the living standards or unemployment,” he said.

As regard the rise in pensions by 2,500 AMD from this November and in welfare benefits by 3,500 AMD from May 1, Minasyan said that the inflation “has devoured the rise.”

In his turn, RA Deputy Minister Vardan Aramyan admitted the fact that the living standards have fallen in Armenia – a 14.4% economic decline was registered in Armenia in 2009, with a 30% decrease in money transfers registered. However, social revenues of the state budget increased by 14-16 per cent. With a 3-4 per cent inflation rate considered, the socially vulnerable sections’ incomes have increased by about 11%, Aramyan said.

Minasyan immediately responded to the official’s remark. “How is it possible that, with the living standards falling, and the per capita GDP decreasing from U.S. $3,000 in 2008 down to U.S. $2,660 in 2009, the population’s incomes have increased?” he asked. In response Vardan Aramyan pointed out that the socially vulnerable sections’ incomes have increased due to the fact that the Government allocates additional funds to them.

T.P.