Open border with Turkey to result in 5% GDP growth: MP

YEREVAN, January 21, /ARKA/. A senior member of the governing Republican Party of Armenia argued today that the open border with Turkey would result in a 5% growth of Armenia’s GDP. Vardan Ayvazian, chairman of a parliament committee on economic issues, said at a news conference economic dividends from the open border are obvious.

‘An open border is a direct road to a 71-million economically developed market,’ he said, brushing aside fears that once the border opened Turkey would flood Armenia with cheaper products to kill local businesses.

‘There is nothing to hinder Armenian government to conduct a protectionist policy, to set privileges for local producers,’ he said, adding that an open border with Turkey means also a direct road to European markets.

In his words, export of Armenian goods via neighboring Georgia makes them non-competitive because of high transport expenses. 

According to the official figures, Armenian GDP fell by 16% in January-November 2009. The government expects the economy to grow by 1.2% this year. -0-