The Indirect Effects of the Global Financial Crisis on the Armenian Economy

Abstract

The Global Financial Crisis, which started in the autumn of 2008, is believed to be the worst in the world history since Great Depression of the 1930s. The collapse of the international financial market considerably affected the growth prospects in both developed and developing countries. Some economists even predicted that it was only the prelude and the worst was yet to come. This paper tackles the economic problems that resulted from the crisis. The main argument is that the Global Financial Crisis did not hit the Armenian economy through the financial networks. The paper develops to confirm the hypothesis that H1: The Global Financial Crisis had an effect upon the Armenian economy: not directly through the financial system, but through other economic sectors.