
YEREVAN, July 2. /ARKA/. Countries of Eastern Europe and the former Soviet Union have put the crisis of the 1990s behind them, but they need to innovate, include all their citizens in the development of their countries, and integrate with the broader global economy if they want to sustain growth, says a new World Bank report.
The report says that productivity growth – the only viable route to lasting prosperity – depends on there being a supportive business environment, specifically one that delivers competition, a deep financial sector, good governance, and superior skills and infrastructure.
“Key aspects of the business environment, such as competition and finance, that shape the behavior of firms are maturing and converging towards those in the developed market economies of Western Europe. This convergence is more pronounced in the new member states of the European Union. The Commonwealth of Independent States (CIS) are followers, though some distance behind”, the WB said in its report.
According to the World Bank’s report many countries in Eastern Europe and the former Soviet Union now face a third transition – aging populations.
“Demographic projections suggest that by 2025 the average Slovene will be 47 years old, giving the country one of the oldest populations in the world. Ukraine’s population will shrink by a fifth, and Russia’s by more than a tenth. Aging will lead to the share of the working age population (15-64 years) in total population declining rapidly after 2015 – less than a decade from now – in the EU8, Southeastern Europe, and middle income CIS countries”, the report says.
The World Bank thinks it is necessary to involve a huge number of people in labour activities, upgrade of effectiveness of exploiting resources and reform pension security system. Otherwise, it will become an unbearable burden for the state budget hobbling economic growth.-0---
Volume of consumer services in Jan.-July grows by 6.1%
Russian investments in Armenian economy in Jan.-July grew to $116.9 million
Armenal produces 13,705 tons of aluminum foil in the first seven months
Armenia's chemical output in Jan.- July grows by 39%
Armenia and Karabakh Plan To Deepen Cooperation At Regional Level
Armenia’s Foreign Trade Turnover Grows 26.5% To $2548.8 Million
Prices For Services Rise 0.2% in Armenia in August
German Specialists Hired to Help Conduct a Study of Tourist Potentials of Armenia’s Lake Sevan
Minister Shrugs off Speculations That Wine Growers May Face Problems in Selling Their Crop
Armavia Cancels a Summer Flight to Batumi and Two to Moscow
Armenia’s state foreign debt grows to $3.027.4 billion as of June 30
Minister shrugs off speculations that wine growers may face problems in selling their crop
Petrol prices down 1.0% in Armenia in August
Armenia’s gross forex reserves drop by 6.5% to $1.786.82 billion
Agriculture Minister: Bread Prices Unlikely to Surge in Armenia

| Market exchange rates 02/09/2010 | ||||
|---|---|---|---|---|
| Currency | Symbol | Unit | Rate | Changes |
| USA Dollar | USD | 1 | 365.03 | 1.29 |
| Euro | EUR | 1 | 468.19 | 3.8 |
| Russian Rоublе | RUR | 1 | 11.90 | 0.08 |
| Favorable еxchange rates of banks 03/09/2010 | ||
|---|---|---|
| Currency | Buy | Sell |
| USD | 366 ProCreditBank |
367.5 “ArmSwissBank” |
| Euro | 467 Byblos Bank Armenia ProCreditBank |
472 ArmBusinessBank Armenian Development Bank |
| RUR | 11.85 "VTB Bank (Armenia)" BTA Bank |
12 ACBA-CREDIT AGRICOLE BANK Ameriabank ProCreditBank |
| Macroeconomics | ||
|---|---|---|
| Indicator | Term | Figures |
| economic growth,% | 2010-06 | 106.7 |
| GBP, billion AMD | 2010-06 | 1332 |
| inflation, % | 2010-07 | 103.7 |
| Budget deficit (proficit), bln AMD | 2010-06 | 16.9 |
| trade deficit, mln USD | 2010-06 | -1281.2 |
| foreign trade turnover, mln USD | 2010-06 | 2116.8 |
| foreign trade turnover, % | 2010-06 | 129.8 |
| Gross External Reserves, mln. USD | 2010-06 | 1780 |
| Monetary base, billion AMD | 2010-06 | 434.5 |
| Money supply, billion AMD | 2010-06 | 786.6 |
| Financial market | ||
|---|---|---|
| Indicator | Term | Figures |
| Anual interests on loans | ||
| Legal entities in AMD | 2010-06 | 13.8 |
| Legal entities in USD | 2010-06 | 12.6 |
| Individuals in AMD | 2010-06 | 22.6 |
| Individuals in USD | 2010-06 | 19.2 |
| Anual interests on deposits | ||
| Legal entities in AMD | 2010-06 | 8.4 |
| Legal entities in USD | 2010-06 | 7.2 |
| Individuals in AMD | 2010-06 | 9.8 |
| Individuals in USD | 2010-06 | 5.4 |
| Annual profitability | ||
| state stock of CBA, % | 2008-08 | 8 |
| fiscal stock of Armenia, % | 2010-06 | 9.6 |
| The percents of the CBA | ||
|---|---|---|
| Indicator | Term | Figures |
| Banking rate | 2010-07 | 13 |
| Repo | 2010-07 | 7.25 |
| Credit | 2010-07 | 10.25 |
| Depo | 2010-07 | 4.25 |