"IF THE ECONOMIC GROWTH CONTINUES AT THE AVERAGE RATE OF THE LAST 5 YEARS, ARMENIA WILL REACH THE MEDIUM INDEX OF THE EUROPEAN COUNTRIES IN 2023"
By Aghavni Harutyunian

AZG Armenian Daily #142
28/07/2007

On July 26, Armenian-European Policy and Legal Advice Center (AEPLAC)
presented its "The Armenian Economic Trends: 2006 Annual Report"

"Annual Economic Report – 2006" contains in-depth analyses of the
main macroeconomic developments in Armenia in 2006, with extensive
international comparisons by using a number of indicators, said the
European Director of AEPLAC Kenneth Myunter

According to AEPLAC’s Senior Expert of Economic Issues Artashes
Shaboyan, the analyses consists of various chapters which cast a light
upon key topics such as composition, structure and per capita levels of
the Gross Domestic Product, and a sectored structure of the outputs,
which includes industrial production, agriculture, construction and
other sectors. These are followed by chapters related to inflation,
labor market, financial / banking sectors, the state budget, external
debt and developments in the external sector.

According to the report, GDP rose three times in the last 5 years,
from that only 61% is the real growth.

Inflation in the economy is 14%; the rest 25% was formed because of
the devaluation of the US dollar against the Armenian dram.

Providing 13,3% economic growth in 2006 Armenia became the fifth in
the list of the 181 countries. Azerbaijan gained the first rank with
its unprecedented indices of the economic growth in the last two years.

If the economic growth in Armenia continues at the average rate of the
last 5 years, Armenia will reach the medium index of the 27 European
countries in 2023.

The key branch in GDP: the construction’s high rates of growth
continue, moreover, it provided half of the GDP growth in 2006. It
is one of the peculiarities of the economic development of Armenia
during the last years.

At the same time the index of the apartments’ construction is not
high as compared with the CIS countries.

In regard to the industry, GDP decreased in the spheres of cigarette,
chemistry and gold jewellery

A growth of productivity is recorded in the agricultural sphere.

The 2,9% index of inflation is close to the medium index of the 27
European countries.

Unemployment decreased and reached to 7,4%, the medium monthly wages
increased.

Head of the World Bank’s Armenian Office Aristomene Varudakis spoke
about the following challenges for Armenia: development of other
branches besides construction, adoption of the amendments of the
second generation, improvement of the investments’ atmosphere,
stimulation of the rivalry, etc.