WORLD BANK DOWNGRADES FORECAST FOR ARMENIAN GDP DECLINE TO 12%-14% IN 2009

Interfax
Aug 31 2009
Russia

The World Bank has downgraded its forecast for the decline in the
Armenian economy to 12%-14% in 2009 from 9%-11%, Aristomene Varoudakis,
director of the bank’s Yerevan office, told journalists on Monday.

The World Bank also raised its forecast for inflation in Armenia to 6%
from 3% this year.

Armenian GDP contracted 18.5% in January-July 2009, although the
rate of decline is slowing down, he said. In particular, industrial
production grew 6% in July 2009 compared to the previous month,
while agricultural production rose 4.5%.

Varoudakis said growth in global fuel prices and fluctuations in the
exchange rate in Armenia continue to impact inflation.

The Armenian Finance Ministry predicts the economy will contract
10%-15% in 2009 and inflation will amount to 4%. The International
Monetary Fund expects Armenian GDP to decline 9.5% and prices to grow
5%. In June, the Armenian Central Bank predicted GDP will contract
7%-8% in 2009.

From: Emil Lazarian | Ararat NewsPress