Shadow economy in Armenia

Armenian analyst Ruben Grdzelian thinks a substantial part of Armenia’s economy is in the shadow. It is very difficult to change anything because strong political clans are using umbrellas to cover such businesses. Attempts to improve the economic situation in the country such as regulating taxes are due to failure. Unfortunately for the country’s economy the system is an absolute failure. Grdzelian stated that the system is very difficult to change. He also commented on the huge financial resources transferred abroad to the offshore zones by different high-position political figures. Based on the expert evaluation, Grdzeliani thinks that Armenia’s shadow economy is almost equal to the country’s current budgetary revenue. It means that in reality the country’s budget could be double. Meanwhile Armenia hopes to receive foreign loans either from the EU or from Russia.