Yerevan, May 26, Noyan Tapan. The current world financial and economic crisis is the first global recession, and no country can escape its impact, told Sergei Aleksashenko, former First Deputy Chairman of Russia's Central Bank at the “Armenia: Weathering the Global Storm” economic forum kicked off on May 25 in Yerevan. International financial organizations and most economists predict a deep and lengthy recession for a wide range of developed and developing countries. As many of these states, Armenia will face the consequences of adverse global trends, and in some ways is likely to be even more affected owing to a dramatic economic slowdown in some of its main trading partner countries. According to Sergei Aleksashenko, similar crisis occurs from time to time and result in elimination of weakest enterprises. "Governments should prepare for next crisis and the resources of the Central Bank should be used to resist it. In this respect the U.S. is in better condition than Armenia and Russia," Sergei Aleksashenko said. According to him, devaluation of the national currencies of Armenia and Russia during global crisis by 20 to 40 per cent was a bitter lesson for both countries, in any country fluctuation of exchange rate is not used as economic policy tool. Sergei Aleksashenko called on Armenian and Russian authorities to implement a policy aimed at strengthening national currency. Besides, in S. Aleksashenko's opinion, institutional reforms should be among main directions of governments of CIS countries. Although the peak of recession has passed but the economy will be still retarded by slowdown of anti-crisis and anti-corruption measures. According to S. Aleksashenko over the first quarter of 2009 Russian economy experienced 10 per cent drop, which is the highest rate among 20 world powers. This highest decline was conditioned by the dependency of Russia on the world raw material markets and oil prices. In early 2008 the drop in demand for metals, products of chemical industry resulted in the decline of Russia's economy. In 2008 investments reduced, since after Russian-Georgian was investors started to take out their investments from Russia.

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