ARMENIAN FINANCE MINISTER: NATIONAL BUDGET 2010 WILL BE BASED ON 1%-1.5% ECONOMIC GROWTH FORECAST

ArmInfo
2009-08-28 16:52:00

ArmInfo. The national budget 2010 will be based on 1%-1.5% economic
growth forecast, Minister of Finance of Armenia Tigran Davtyan said.

As regards the 18.5% GDP decline in Jan-July 2009, Davtyan said that
simply the growth rate of the basic pre-crisis period – 2008 – was
very high. The index of Q4 2009 will be compared with Q4 2008 when
the crisis was already existent. The basic index will be lower. As
a result, the decline will not be as dramatic.

In July 2009 as compared with June 2009 GDP grew by 6.3% to 1,417bln
AMD or 4.043bln USD. According to preliminary estimates, the economic
declined in 2009 will make up 10%-15%. In 2010 the Armenian economy
will revive.

Inflation will be very low. Some months will even see
deflation. According to the National Statistical Service of Armenia,
in Jan-July 2009 as compared with Jan-July 2008 inflation was 2.7%,
in July as compared with Dec 2008 – 2.4%. In July as compared with
June there was 2.7 deflation.