Armenia is a banking country: the growth chain and its danger

PanoramaamTV · 7 minutes

“Armenia is a banking country, that is, foreign finance comes to the banking system, from the banking system it enters construction, the real estate market and services. These are the main growth engines of the Republic of Armenia. Production recorded the main growth in 23-24, driven by the re-export of gold, until the bubble burst, as a result of which exports, imports, and other indicators declined significantly. In the secondary market, a decrease of about 14% is observed in prices and sales indicators, while in the primary market the growth still remains high. That is, the market is divided in our country.”

“Our economy basically operates along the following chain: we produce very little, money comes to the Republic of Armenia, enters the banking system, from the banking system it enters the real estate market, construction, real estate prices rise accordingly, and the more construction there is, the more real estate prices rise, the more economic growth is ensured. If this chain were to stop one day, let’s say, as happened in 2008, then the entire economy would collapse.”