The Impacts of COVID-19 on the Real Sector of Economy and Anticrisis Measures Effectiveness in the Republic of Armenia

Abstract

In response to the economic and social impact of COVID-19 pandemic , the Government of Armenia launched the anti-crisis support economic and social programs,which level of effectiveness are questionable, despite the fact that they contributed to averting the deep economic recession and avoiding grave social challenges that might have emerged. Thus, in order to face more serious challenges in the future, it is necessary to reconsider the scope of anti-crisis measures, allocations and the scope of their beneficiaries. One of the most effective ways to overcome such economic crisis could be the provision of sufficient liquidity into the economy, which could help avoid a sharp decline in both aggregate supply and aggregate demand, otherwise the economy would inevitably enter a long-term downturn. As we can see, the volume of these injections in Armenia was far from sufficient, as a result of which the deep decline amounting to -7.6% was registered.