CENTRAL BANK: 5.8% ECONOMIC DECLINE EXPECTED IN ARMENIA IN 2009

ARKA
May 19, 2009

YEREVAN, May 19. /ARKA/. A 5.8% economic decline is expected in Armenia
in 2009, says the monetary-credit policy program of the Central Bank
of Armenia for the second quarter 2009.

According to the program, previous projections included in the program
of the first quarter were reviewed to reflect actual indicators
recorded in Q1 2009.

Added value is to reduce by 3% in agriculture in Armenia in Q2 2009
due to decline in crops because of unfavorable climate conditions in
the first four months of this year.

A 15-19% compression is expected in added value in construction
field due to expected reduction in capital inflow and pessimistic
expectations of construction companies.

Real growth of added value is to constitute 2.5% in the services
sector though: in this field retail turnover projections were somehow
reviewed due to the fact that actual retail trade turnover was lower
than the expected level in the first quarter of this year, as well
as because of the reviewed projections of domestic demand.

According to the Central Bank, risks connected with reduction of
projected economic and GDP indicators may go down depending on amount
and speed of anti-crisis programs announced by Armenian government.

Growth risks may be connected with implementation of large-scale
regional transport and energy programs.

At the end of this year and in the first quarter of 2010, Armenian
economic development trends will be mainly depending on developments
in the global economy, as well as on the scope and the pace of the
government programs.