Abrupt deceleration of import growth rates expected in Armenia

2008-12-13 22:51:00

ArmInfo. The durable unfavorable situation in the world economy and its
deepening has caused deceleration in the growth rates of export from
Armenia, particularly, in Jan-Oct 2008 the export growth rate was
practically equal to zero. Despite the maintenance of the growth of
import to Armenia, the import growth rates are expected to decelerate
due to demand reduction in the domestic market. This is recorded in the
Protocol of the December 2 sitting of Board of the Central Bank of
Armenia (CBA), the CBA press-service told ArmInfo.

At the same time, the growth rates of private transfers to Armenia
slowed down in October. In this connection, the CBA Board thinks that
international organizations’ forecasts about cumulative risks due to
worsening of prospects for Russia’s economy development will mostly
affect money transfers. The matter also concerns the forecast of the
International Monetary Fund which says that the economic growth of
Russia will fall to 3% in 2009.

According to the National Statistical Service of Armenia, the foreign
trade turnover grew by 31,5% in Jan- Oct 2008, and dropped by 3,4% in
October having totalled 1381.8 bln AMD, or $4520.4 mln. Export fell by
15,6% in October 2008, but grew by 0,9% as compared with October 2007,
having totalled 287.7 bln AMD ($941.2 mln). Import increased by 0,1% in
October 2008, and by 42,8% as compared with October 2007, having
totalled 1094.1 bln AMD ($3579.2 mln).

In early December the CBA Board decreased the refinance interest rate
by 0.5 percentage points to 7,25%, the rates on deposits and lombard
credits are fixed at 4,25% and 10,25% respectively.