IMF: Opening of Armenian-Turkish border to positively affect Armenian economy

PanARMENIAN.Net - IMF expects that opened Armenian-Turkish border in the medium term will have a positive impact on Armenia's economy, Nienke Oomes , Resident Representative of the International Monetary Fund in Armenia told a PanARMENIAN.Net reporter, commenting on the possible consequences of open borders.



At the same time, according to her, in the short term some Armenian companies in the local market may enter tough competition phase in the short term. 



According to IMF experts, opening of the border will lead to improvements in trade and services in each of these markets. The immediate result of the opened border, she said, would be a 10 to 20 per cent reduction in transport costs, which will result in lower prices for imported goods to Armenia, which will improve the life standard of the Armenian population. In addition, the Turkish economy could be a potential market for Armenian goods and services. 



There is huge potential for tourism development both for Armenia and Turkey, if border are open, " Nienke Oomes said. 



According to Nienke Oomes, the volume of foreign direct investment and remittances will grow, since "the opening of the border could create a more attractive environment for investment and regional integration," she said.