ARMENIA 2009 GDP GROWTH FORECAST TO 8%: REPORT

ARKA
Oct 8, 2008

YEREVAN, October 8. /ARKA/. Armenia’s gross domestic product (GDP)
is expected to increase by 10% this year, compared to 8% in 2009,
Grant Thornton International (GTI) says in its International Business
Report 2008, citing a considerable growth in the country’s construction
this year.

Taking into account the hike in import prices, record-high oil prices
in the global market and the growing domestic demand, GTI expects 7%
consumer price index exceeding the country’s benchmark inflation
(4%±1.5%).

At the same time, the index is lower than in Armenia’s neighbor
countries and GTI says it will go down to the planned level next year.

GTI forecasts 1.2% budget deficit to GDP this year. Twice lower as
the rate expected, this will strengthen foreign currency. Inflow
of private transfers will grow at a quick pace, with the external
account deficit reaching 8.6%.

According to the RA National Statistical Service, Armenia posted 10.3%
year-on-year economic growth in January-August 2008. According to the
RA budget, the country is expected to record 10% GDP growth this year.

The International Business report pprovides insight into the views and
expectations of 7,800 privately held businesses across 34 economies.

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