LOWEST GROWTH IN PRICES REGISTERED IN ARMENIA
By Ara Martirosian
AZG Armenian Daily #205
08/11/2007
Economy
Yesterday in Tbilisi Chief Councilor of IMF Middle East and Central
Asia department David Owen introduced the a report on regional
finance. The main idea of the IMF report was that the economy of the
region is growing continuously at a high rate, which brings forth
necessity of reduction of growth in prices.
According to the International Monetary Fund representative, Caucasus
and Central Asia are one of the most swiftly developing regions in the
world. It is prognosticated that average GDP growth will make up 13%
this year in those regions. High economy growth rates in Azerbaijan,
Kazakhstan and Uzbekistan depend on the oil factor. Kyrgyzstan and
Tajikistan provide high economy growth due to foreign financing and
infrastructure programs. Armenia and Georgia, which do not possess
oil resources, also have impressive economy growth rates due to
essential reforms.
David Owen pointed out high rates of global growth in prices in the
region caused by swift growth in prices for foodstuffs. Average growth
in prices in the region has made up 12% and it is predicted to grow
even more by the end of this year. Owen informed that in Kyrgyzstan
and Tajikistan price growth rate is drawing near 20% and noted that
only in Armenia it is preserved at 5% due to flexible currency exchange
rate policy.
The IMF expert also said that the structures controlling the economy
policy cannot prevent the shock promoted by the growth in foodstuffs
prices, but they have to do everything to avoid its impact on the
whole market.
He said that many countries have the opportunity of toughening
the finance crediting policy by increasing the interest rates and
decreasing the interference to foreign currency market. At the same
time it is necessary to implement careful taxation and budget policy
so as to provide reduction of demand pressure and of the national debt.