IMF FORECASTS 7.5% INFLATION IN ARMENIA

Interfax
Sept 17 2008
Russia

The IMF is forecasting that inflation in Armenia will be 7.5% in
2008, well above the target of 4% plus or minus 1.5%, the head of the
International Monetary Fund’s mission in the country, Marta Castelo
Branco said at a press conference on Tuesday.

The situation with inflation is more unpredictable this year than
in the past due to external factors, she said. The forecast of 7.5%
is realistic if there are no new external shocks, she added.

Commodities prices, particularly for oil products and grain, have
begun to fall throughout the world and this trend has also been seen
in Armenia, which imports these products, she said.

If the economic situation in Armenia does not deteriorate under
the impact of external factors, GDP growth will be 10% this year,
as forecast earlier, she said.