IMF FORECASTS 5% GDP DROP IN ARMENIA BY END-2009

ARKA
May 11, 2009

YEREVAN, May 11. /ARKA/. The International Monetary Fund (IMF)
forecasts up to 5% GP drop in Armenia by end-2009, IMF Mission Chief
for Armenia Mark Lewis said today presenting the Regional Economic
Outlook: Caucasus and Central Asia Report.

IMF previously forecast a 4.5% inflation and minus 1.5% economic
slowdown in Armenia by end-2009.

Gloomier forecasts are due to a considerable slowdown in Armenia’s
construction sector in 2009, the IMF mission chief said, citing last
year’s economic boom in Armenia.

According to the short-range forecasts of the organization, Armenia
is likely to post a considerable drop in mining industry, due to the
tumbling prices of metal in the global market.

However, Lewis cited stabilization of the situation in Armenia in 2010,
thanks to which the country will post a zero growth.

Citing a 6.1% quarterly drop in economy, IMF Resident Representative
in Armenia Ninke Oomes said the organization forecasts 3.6% inflation
in the country this year, compared to 7.2% in 2010.

According to IMF, Russia is likely to post a record economic slowdown
of minus 6% (IMF forecasts a 0.5% GDP growth in Russia in 2010)
and the economic growth is supposed to be minus 1.3%.

According to WB forecasts, Armenia is likely to post zero economic
growth by end-2009.