How Much Do Holidays Cost The Armenian Economy?

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Today is the 10th straight day of holidays in Armenia. I’ve been in need of a bank for at least 5 days, not a chance! Car technicians are not working either, although I need something urgent to be fixed!

I’ve been wondering how can a poor country like Armenia afford to shut down its economy and make no money for so long.

There are some estimates, that the UK economy is losing £ 2.3 bn on each bank holiday. How much is Armenia losing?

List of Armenian Holidays

Let’s take a look at the list of official Armenian holidays for the start. Here’s a list I’ve prepared using this Wikipedia entry.

January 1-6 New Year and Christmas holidays
January 7 All Souls’ Day
January 28 Day of the Army
March 8 Women’s Day
April 24 Genocide Memorial Day
May 1 Worker’s Day
May 9 Victory Day
May 28 Republic Day
July 5 Constitution Day
September 21 Independence Day
December 31 New Year’s Eve

An Attempt To Estimate Losses

NOTE: I have very basic understanding of economics, so these are just rough and dumb calculations.

Since sometimes the holidays coincide with weekends, we usually lose from 11 to 13 days each year

Taking the data from 2012 (the most recent year for which full GDP data is available) I just calculated, that every official holiday costs Armenia $ 40 mln. Hence, if instead of giving the nation 8 days of holidays on New Year’s Eve and Christmas, we had only 3, Armenia’s GDP (9,951 bln) would gain an additional $ 200 mln and the GDP growth would be higher by nearly 2%.

GDP in 2012 (official exchange rate)  $9951000000,00
# of days in 2012 366
# of holidays coinciding with regular work days 13
# of weekends 52
Total number of non-working days 117
The value of each working day  $39963855,42
Additional 5 working days would generate  $199819277,11
What percent of the GDP does it make? 2%

PS: I’ve been brought up thinking that if one is poor, one has to work harder and more to earn a decent living. This doesn’t seem to be the case with the Armenian authorities though…

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One thought on “How Much Do Holidays Cost The Armenian Economy?

  1. Here are my calculations if anyone is interested:
    GDP 2012 $9951000000,00
    # of days in 2012 366
    # of holidays coinciding with regular work days 13
    # of weekends 52
    Total number of non-working days 117
    The value of each working day $39963855,42

    Additional 5 working days would generate $199819277,11
    What percent of the GDP does it make? 2%

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