CASH FLOWS FROM ARMENIA’S PARTNER COUNTRIES REASON FOR PESSIMISTIC FORECASTS, PREMIER SAYS
ARKA
Oct 20, 2008
YEREVAN, October 20. /ARKA/. The reason for gloomy forecasts of
Armenia’s economy is financial flows from the country’s main trade
partners, RA Prime Minister Tigran Sargsyan said last week.
"Since the European Union has 60% share in Armenia’s trade, we
depend much on the financial situation in the European trade zone,"
the premier said, summing up the Armenian delegation’s visit to
Washington on October 9-15.
Armenia-EU trade turnover totaled $1,219.3mln in January-August 2008 –
20.5% year-on-year increase. The share of EU in Armenia’s trade was
36.8% in the reporting period. European exports to Armenia rose 9.6%
to $392mln.
Armenian imports to EU increased by 26.4% to $827.3mln.
"Inflation risks remain high in EU, and the European Central Bank
has to lower the interest rate to avoid further economic downturn,"
Sargsyan said, stressing the importance of overhauling European and
U.S. economies.
"However, the record-low fuel prices in stock markets have no influence
on consumer prices due to considerable economic lags," the premier
was quoted saying.
He underlined the Washington debates and talks over 2009 fuel price
forecasts.
Sargsyan urged Armenia to keep a vigilant watch over economic
developments in Europe, adding setback of import prices will be =0
Abeneficial for Armenia’s economic programs, as the main reason for
this year’s record-high inflation was the hike in import prices.
"If import prices plummet, Armenia’s harsh monetary and credit policy
will help curb inflation and the Central Bank will be able to lower
interest rates, covering liquidity needs and boosting economy,"
the premier said.