Nagorno Karabakh (Artsakh) is suffering at least $1,9 million in economic damages every day amid the ongoing Azerbaijani blockade, according to a report by a specialized team of economists led by international consultant for finance management Vardan Aramyan.
The report was ordered by the government of Nagorno Karabakh and the former State Minister and co-founder of the We Are Our Mountains Territorial Development Agency Ruben Vardanyan.
Recovering Nagorno Karabakh’s economy in the future is going to be very difficult, the experts warned.
100 days of blockade caused $190,000,000 damages (including deadweight loss) to Nagorno Karabakh.
The evaluation doesn’t take into account loss of potential and the necessary expenditures for buffers intended for avoiding such economic shocks.
“The longer the blockade lasts the more damage is inflicted upon the economic potential. Someday soon we might face a situation when there won’t be an economic life at all, and there’ll be simply consumption, the money will flow from the outside, the residents will simply consume, and the consumed products will mostly be imported,” Aramyan warned.
Nagorno Karabakh’s economy was growing before the 2020 war. Since then, it dropped on an average of 17,6% annually. But the economy began to recover in 2022, with 18,2% growth being recorded in January-September. The blockade disrupted the growth. In December, the economic activity index dropped 20,7% after having recorded 27,7% and 13,5% growth in October and November.
Some 16,200 people could become unemployed if the blockade continues.
Nagorno Karabakh has been blockaded by Azerbaijan since 12 December 2022.
