IMF: Armenia needs good relations with Turkey to further boost its economy

Thursday, July 21, 2005
İSTANBUL - Turkish Daily News

Armenia's economic growth and reforms have been remarkable in the past four years, but the country needs to normalize its trade relations with Turkey to further its economic development, said the International Monetary Fund (IMF).

In the latest IMF survey, the fund said over the past four years real GDP growth in Armenia has outpaced that of its neighbors and other low-income countries, averaging 12 percent a year.

“Also, since 2001, inflation has been low, at an annual average of 4 percent, and poverty and inequality have fallen rapidly. The government's sustained commitment to economic stability and reform, especially since 2001, has been a critical element in this progress. Armenia is now at a cusp -- more reforms can spur further gains, but faltering could put them at risk,” the fund said in an article on Armenia.

“At the same time, Armenia's economic potential relies on an export-led development process that would benefit significantly from improved customs administration, normalized trade relations with Turkey, and a peaceful solution to the territorial dispute with Azerbaijan,” said the survey.
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