HARVEST OF SORROWS….

While 2000 began well for all of the economies of the Commonwealth of Independent States, a severe drought in Armenia, Georgia and Moldova has ended any hopes that their economies will end the year in the black. Lack of rain and high temperatures have destroyed 70 percent of Armenia’s grain, fodder, vegetable, fruit and potato harvests and 77 percent of Georgia’s grain harvest. Moldova’s grain harvest this year was 14.2 percent off from last year’s, and the production of grapes in Georgia and Moldova–both of which are wine-producers–was down sharply. Overall, agricultural output is forecast to drop by 16.6 percent, 17.8 percent and 9.0 percent in Armenia, Georgia and Moldova, respectively. This constitutes a severe blow to the economies of all three states, given the significant role agriculture plays in the total economic output of each. Thus the gross domestic product in Armenia, Georgia and Moldova is predicted to decline overall this year by 5.4 percent, 4.3 percent and 6.0 percent, respectively.