IMF FORECASTS ARMENIAN GDP WILL GROW MORE THAN 10% IN 2007

Interfax Russia,
May 30 2007

YEREVAN. May 30 (Interfax) – The International Monetary Fund is
predicting that the Armenian economy will grow more than 10% in 2007
compared to the budget target of 9%, David Owen, IMF senior advisor
for the Middle East and Central Asia, said at a Wednesday press
conference in Yerevan.

GDP growth for the first quarter of 2007 points in favor that the
economy could grow more than the budget forecasts, he said. Large
foreign transfers are also largely contributing to GDP growth.

Construction remains the fastest growing sector of the economy,
where the real growth in production was 37% in 2006.

Armenia’s economy has grown by an average of 13% over the past four
years, Owen said. Inflation will be 4% in 2007 compared to an average
forecast of 11% for Middle Eastern and Central Asian countries.

The Armenian economy grew 13.4% in 2006.