My State of Gambling, Armenia
Official statistics still convinces us, that condition of economy is improving, and not the contrary. For instance, throughout the first months of 2016 economic activity grew by 4.7% (as compared to January-February of the previous year). There are spheres, which recorded approximately double-digit growth (industry and service). Moreover, average monthly salaries grew (by 2.5%), and consumer prices have decreased. In other words, life became cheaper.
Seemingly, this was enough for Armenia’s citizens to feel satisfied and content from socio-economic condition. Are they really content? Reply to this question may be given by everyone, out of social condition of himself/herself and his/her acquaintances. According to information at our disposal, they aren’t content (slightly said). Almost everybody is discontent, those, who have a job, a businesses, from small to big, are complaining of growing problems.
There is indirect proof of it in official statistics as well. For instance, volume of internal trade turnover continues to decrease. Purchase by RA citizens for January-February of the current year comprised AMD 264,2 billion, which has decreased by 1.8%, as compared to indices of the same period of the previous year. And this is not surprising, especially against the background of transfers from abroad.
Pursuant data of the Central Bank of Armenia, sum of money sent to Armenia for non-trade purposes by physical persons through the banking system for January-February comprised USD 108.9 million, which is less by USD 13.4 million (12.35%) as compared to the same period of the previous year. Another bothering indicator is added to this—overdue loan growth. According to the data by RA National Statistical Service (NSS), delinquent loans of Armenia’s banking system for February 2016 have recorded a rapid growth, and reach a record index—AMD 45.3 billion. As compared to January, volume of overdue loans increased by about AMD 5.4 billion or by 13.4%, and compared to last year’s February—by AMD 7.8 billion or 20.8%. As of late February, unit weight for overdue loans in total loans provided by banks reached 2.13%. Unit weight for extended loans of banks comprises 5.35%. Growth of overdue loans directly edifies of fiscal difficulties; people are short of money to implement their loan liabilities in time. After all this, naturally, a question may arise: on account of what did economy activate? Industry, as formerly mentioned, has grown on account of mining. However 9.8% growth of service seemed to get unnoticed. And while considering detailed indices of service, an impression may be obtained that our officials are right, and life is becoming easygoing and joyful.
It’s worth touching upon the data of the field of service for January-February. Financial and insurance activity have bigger unit weight (21.4%), information and connections (18%), culture, entertainment and recreation (20.5%). The field of entertainment recorded the biggest growth—50.5%, and comprised AMD 35.7 billion. What does the field include? By the word “recreation,” not to confuse the reader, hotels are meant (organization of accommodation and public catering), on the same line restaurants and other eating places may be found.
In “culture, entertainment and recreation”, naturally theaters, cinemas, exhibitions and etc. may be found. However, major actor here is entertainment.
Official statistics doesn’t provide more detailed data, to clarify what indicators have been recorded for the very service.
However, “spiteful tongues” say, under entertainment casinos should be understood. One of those “spiteful tongues” is Mark Horton, head of International Monetary Fund (IMF) Armenia mission. During one of the press conferences he stated, that according to their survey, growth of “culture, entertainment and recreation ” subfield is conditioned by growth of attending casinos. And if it’s true, 2 suppositions should be made. Either our compatriots show inexplicable behavior, the worse the situation is, the more they spend on pleasure, and visit casinos and other entertainment places. Either the condition of our country is good, well-being of everyone has grown, in accordance with Armenian nature, everybody always complains.
By the way, Artsvik Minаsyan, RA Minister of Economy, called on the reporters, while touching upon economy, to try to combine concern with their developments, and not only publish figures, based on National Statistical Service, that the debt exceeded to 5 billion, and etc, i.e. try also to transfer positive, optimistic “messages.”
The amount directed to entertainment in this regard may be introduced into the appeal, of course, there is a standpoint that people waste more money on gambling, when they’re short of money, and increase of gambling, as it is, isn’t such a joyful thing. However, let’s not see only the bad: if they waste for pleasures, accordingly, they have money.
By Babken Tunyan
