Armenian Gov’t Releases GDP Forecast For Next 3 Years

ARMENIAN GOVT RELEASES GDP FORECAST FOR NEXT THREE YEARS

Interfax News Agency
July 4 2008
Azerbaijan

YEREVAN

The Armenian government is predicting GDP will grow 9.2% in 2009, 8.5%
in 2010 and 8% in 2011, Armenian Finance Minister Tigran Davtian told
a July 3 briefing.

The government on July 3 approved a medium-term program for
expenditures in 2009-2011 that contains several macroeconomic
indicators, he said.

This program is to be the basis for the compilation of the budget
for this period.

In nominal terms, GDP is expected to total 4.169 trillion dram in 2009,
4.7 trillion dram in 2010 and 5.273 trillion dram in 2011. Inflation
in this period is forecast at 5%, 4% and 3%, respectively.

A low budget deficit and the appreciation of the dram will help to
lower inflationary risks, he said.

The forecast for budget revenue in the period is 900.7 billion dram
in 2009, 1.18 trillion dram in 2010 and 1.154 trillion dram in 2011,
while the forecast for budget expenditures is 947 billion dram,
1.79 trillion dram and 1.222 trillion dram, respectively. The budget
deficit is expected to total 46.3 billion dram in 2009 (1.1% of GDP),
61.1 billion dram in 2010 (1.3%) and 67.5 billion dram (1.3%).

The ratio of tax revenue to GDP is to total 16.3% in 2008 before rising
to 16.7% in 2009 and to 17.5% in 2011, Davtian said. Economic growth
in addition to improved tax and customs administration are expected
to increase tax revenues, he said.

Armenian GDP grew 13.8% to 3.14 trillion dram in 2007. The government
has predicted GDP will grow 10% in 2008.

The official exchange rate on July 3 was 303.55 dram/$1.