FINANCE MINISTRY: 6.1% YEAR-ON-YEAR GDP DECLINE RECORDED IN ARMENIA IN 1ST Q 2009

ARKA
Apr 30, 2009

YEREVAN, April 30. /ARKA/. On Wednesday, Armenian Finance Minister
Tigran Davtyan, speaking in National Assembly, said Armenia’s GDP
has fallen 6.1% over the first quarter of this year, compared with
the same quarter of the previous year.

He said that the global recession can’t bypass Armenia, since the
country constitutes a part, though small, of the global economy.

Davtyan pointed out that certain positive results were recorded in
March, but only in comparison with the previous month.

"Comparison of quarterly indicators shows considerable GDP reduction –
by 6.1%, compared with the first quarter of 2008", he said.

The minister said that extra megabuck funds are expected in the second
half of this year.

These funds will be used for extending preferential credits,
Davtyan said.

He said the Government remained steadfast in its determination to
pay special attention to social expenses.

"These expenses won’t be reduced under any scenario. Their share in
GDP will grow. This will mitigate the crisis impact on the poor."

According to the National Statistical Service of Armenia, GDP has
reduced 6.1% over the period between January and March 2009, compared
with the same period of the previous year, to AMD 465.5 billion
($1429.9 million).

GDP grew 22.1% in March, compared with February.

Inflation was recorded at 2% in the first quarter of 2009 compared with
December 2008, and consumer prices rose 0.7%. ($1 = ASMD 372.22).