9.8% ECONOMIC GROWTH IN ARMENIA IN JAN-MAY 2008

ARKA
July 8

At his news conference at the international press center "Novosti",
RA Minister of Economy Nerses Yeritsyan reported that high economic
activity can be observed in Armenia, and the RA Government is trying
to find the right solutions for the existing problems.

Yeritsyan pointed out that the current economic growth meets the
Government’s expectations. He said that the same economic growth is
expected in June.

On the other hand, the higher inflation rates recorded early this
year are getting stable, which is the result of a balanced monetary
and fiscal policy and of a certain fall in the world prices.

A progressive rise in incomes and wages is at least twice as high as
the economic growth rates. It also is also 10% as high as economic
growth plus inflation. Yeritsyan said that construction remains a
mover of economy. On the one hand it is a positive factor, but on
the other it sets a task of economic diversification.

"Economic is active, and the economic growth and income targets will be
realized though somewhat higher inflation rates can be recorded, which
can be attributed to inflationary pressures. In the latter half of
the year they are expected to change their direction," Yeritsyan said.

10% economic growth is budgeted in Armenia for this year. An annual
inflation rate of 9.6% was recorded in Armenia this June – an excess
of 4% over the highest planned inflation rates.

An inflation rate of 4% (±1.5%) is budgeted in Armenia for 2008

–Boundary_(ID_/AGV3dKKhHHjj84Vk3j5CQ)–