KAREN TCHSHMARITIAN: IN 2006 ECONOMIC GROWTH IS FIXED IN ARMENIA

AZG Armenian Daily #141, 28/07/2006

Economy

By end 2006 the growth of the Armenian GDP will surpass 10%. Karen
Tchshmaritian, RA Trade and Economic Development Minister, said this
at today’s press conference. He said that in the first half of 2006,
the economic growth made 11,8%(AMD 809,2 billion), while the index
deflator of GDP totaled to 1,8%. He said that the economic growth in
the second half of the year will surpass that of the January-June. In
particular, this will happen thanks to launching new factories,
the development of minor and medium businesses, the growth of the
food production volumes, the growth of agriculture and construction
spheres. He pointed out the "ArmenAl" plant will issue its production
already in September, securing 3 thousand tones of production by the
end of the year. Besides, the production volume of "Nairit" will make
8 thousand tones, Tchshmaritian said.

Besides, he said that in the first half of this year, the monetary
profits of the population grew by 17,4%, the expenses increased
by 19,2%, including the expenses for purchasing goods and services
that grew by 13,5%. He stated that the retail trade turnover also
grew by 12,1%, while the construction volume grew by 31,8%, he
said. Commenting on the opportunity to purchase the ‘Mars’ factory, he
said that AFK ‘System’ company, Russia, entering the Armenian market
will considerably contribute economy of Armenia. At the same time
the Minister added that there is no official information about AFK
‘System’ intending to purchase the shares of ArmenTel. It~Rs worth
mentioning that ‘Mars’ electronic equipment factory was handed to
Russia in return of the public debt of Armenia. In 2005 the factory
produce rate came to $1 million, 2 times more than in 2004. The
factory is soon to receive license to work for the Russian military.

Transport Minister of Russia Igor Levitin said that AFK ‘System’
must elaborate a program of ‘Mars’ factory development and make it
agree with the Armenian side, so that the Russian Government agree
to consider the proposal to purchase the factory.

Besides, he added that in 2006, the indicator for the foreign
tourists’ visits to Armenia will grow by over 25% in 2006. He said
that RA Government actively elaborates projects for development of the
infrastructures on both the budget sources and the financial sources
allocated by "Millennium Challenges" corporation. The minister stated
that the development of the infrastructures will lead to considerable
growth of the tourists in 2007. He added that in the first half of the
year 46023 foreign tourists visited Armenia and 42675 Armenia tourists
left for foreign countries, this surpasses the same indicator of the
last year by 13,5%.

As for the investments made in Armenia, Minister said that In the
first half of 2006, mainly "investment production" was imported to
Armenia. He said that the growth of the equipment and cars’ import
made about 14,7%. Moreover, only two plants imported equipment costing
over EURO 70 million in the period under review. The import indicator
also influenced the consolidation of AMD against USD by 4,1%, as well
as 18,1% of the custom’s office cost, he said. In this connection,
he said that the custom’s office cost growth is conditioned by the
import of a more quality and expensive production.

By Ara Martirosian

From: Emil Lazarian | Ararat NewsPress