ARMENIAN MINISTER FORECASTS 3-8% ECONOMIC DOWNTURN IN ARMENIA IN 2009

ARKA
Apr 15, 2009

YEREVAN, April 15. /ARKA/. Preliminary estimates show that Armenia’s
economic downturn may range from 3% to 8% in 2009, RA Minister of
Labor and Social Affairs Arsen Hambardzumyan said.

"According to more optimistic forecasts, it is possible to end this
year with positive revenues, but it is obvious that the planned 9.2%
GDP growth is unreal," the minister said Tuesday at a conference on
the social impact of the global crisis on Armenia. Hambardzumyan
did not rule out sings of strain in the local market and social
insurance sector.

"One of the signs is reduction of employment opportunities and up to
10% mass job cuts," he added.

The minister also pointed out inflation, the rise in electricity,
gas and water prices, as well as the hiking prices in the local
commodities market.

"One of the most negative factors influencing the situation is the
slowdown in foreign remittances to Armenia, with the dynamics of the
past three months showing that the index is to plunge around 25%,"
Hambardzumyan said.

He also stressed the increasing unemployment and the stream of job
seekers.

According to the RA National Statistical Service (NSS), Armenia saw a
3.7% year-on-year economic slowdown between January and February 2009,
with the GDP deflator index reaching 100.4%.

From: Emil Lazarian | Ararat NewsPress