ARMENIA’S PREMIER CONSIDERS DARING ESTIMATED ECONOMIC GROWTH AT 8-10% IN 2008-2010

ARKA
Oct 24, 2008

YEREVAN, October 24. /ARKA/. The economic growth is estimated at 8-10%
in Armenia in 2008-2010, said the RA Premier Tigran Sargsyan at the
parliamentarian committees’ sitting on discussing the state budget
for next year on Friday.

"We can state it is a rather daring indicator, considering the
challenges we have to cope with," said the Premier and added the
estimated economic growth for next year is 9.2%.

He noted the rates of economic growth were very high in 2001-2007,
averaging to 13%, which contributed to doubling the per capita GDP.

"The Government will continue its tax and lending policy that
contributes to macroeconomic stability and economic growth," he said.

According to him the macroeconomic policy presupposes small budget
gap, reasonably low inflation rates and floating exchange rate which
wouldn’t pose a threat to economic development.

Specifically, 4% (±1.5%) inflation rate is estimated for 2009 with
budget deficit/GDP ratio 1%.

"These strong indicators will provide us with flexibility in coping
with challenges in world financial markets that will inevitably have
influence on the world economic growth," said Premier Sargsyan.

He stated the national debt is budgeted at US $2.2bln, 16.1% of GDP
in 2009 against 17.6% this year. Foreign dept is 81.5% of the total
national debt.

The foreign debt/GDP ratio will be 13.1% in 2009 against 14.9%
this year.

"Armenia’s foreign national debt indicators will be among the
indicators of countries with low or medium debt burden. This will
enable us to keep our rating of a solvent country, which increases
our reliability," said the Premier.

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