Friday, November 21 2014

 In 2013 almost every third resident of Armenia was poor, special report of Armenia's National Statistics Service, made under support of the World Bank says. The report was published on 18 November 2014. It covers the poverty indices of Armenia for 2008-2013. 

According to the report, the economic slack in 2009 became the most important source or reason of the poverty growth in Armenia for 2008-2013, as a result of which the 4% growth of the poverty level was fixed - from 27,6% in 2008 up to 53% in 2013. 13.3% of Armenia's population were very much poor and 2.7% - extremely poor. Five years ago, the level of extremely poverty was 1,6%. So, in 2013 about 967 thsd people in Armenia were poor, 402 thsd of which - very much poor and 82 thsd - extremely poor. The report also says that in 2012 the poverty level was 32,4%. 

The similar report for 2011 says that after the global economic crisis that affected Armenia since the 4Q 2008, by 2010 the general poverty level grew by 29,7% or 8,2 percentage points. The level of extreme poverty grew by 1,9 times or  1,4- percentage points, and the number of very poor people grew by 1,7 times or 8,7-percentage points. 

To note, according to the information of Armenia's Finance Ministry, in 2011 the poverty level was 31,5%. In 2012, it reached 34%. There are not such data in the report.

The report says that there is no big difference between poverty levels in cities and villages - 32.2% and 31.7%, respectively. In 2008-2013 poverty in urban areas grew faster than in rural ones (4.6% against 4.2%). In Yerevan poverty level is 1.5 times lower than in other cities.

This summer the Caucasus Research Resource Centers published the results of an annual survey entitled Caucasus Barometer, which said that for the fourth consecutive year unemployment and poverty were mentioned as the most urgent problems in Armenia (46% and 16% of respondents, respectively).  

According to the World Bank's standard for 2013, poor in Armenia are people who spend less than 39,193 AMD a month, very poor are people spending 32,318 AMD a month and extremely poor are those spending 22,993 AMD a month. (440 AMD equal 1 USD).
To note, in 1999 poverty level in Armenia was 56.1%.

When asked by ArmInfo to comment on the report, ethnographer Hranush Kharatyan expressed doubt that real poverty level in Armenia is 32%.  She said that the methodology used in the survey is unable to give the real picture of poverty situation in the country. 

"In Armenia 500-1,000 AMD can change a person's social status: if instead of 30,000 AMD a person spends on essentials 31,000 AMD a month, he is no longer regarded as poor," Kharatyan said. She is sure that real poverty level is higher than 32%. 

Among factors that cause growth in poverty she pointed out weak industry, difficulties in business and high corruption.
According to official statistics, on Oct 1 2014 the population of Armenia totaled 3,013,900 people or 3,200 fewer than on Jan 2014, while according to independent experts, the country's population makes up no more than 2,700,000 people.