IMF: ECONOMIC DECLINE SLACKENING IN ARMENIA
ArmInfo
2009-09-09 12:38:00
ArmInfo. The International Monetary Fund experts say economic decline
in Armenia is slackening and positive trends have been observed, Nienke
Oomes, IMF Resident Representative in Armenia, told media on Wednesday.
She said that Armenian economy is over the worst and GDP fall
in Armenia for late 2009 will be lower than for the seven months
of 2009 (18.5%). The IMF’s last forecasts for GDP in Armenia are
currently being specified, but some 10%-15% economic decline and 3%
average yearly inflation are expected anyway, Nienke Oomes said. She
highlighted that real estate prices and transactions in this sector
were up in July as compared to the previous month. IMF representative
believes these positive trends very important, for 2/3 of GDP fall in
Armenia is the result of decline of construction scales and the share
of construction in the 18.5% GDP fall for the first 7 months of 2009
was 14.1%. She said that demand for housing is still high in Armenia
and the construction sector will develop in the mid-term outlook.
Nevertheless, Armenian economy was rather dependent on the construction
over the last years. Unfortunately, this sector is subject to wide
fluctuations, and the country’s economy needs diversification. Nienke
Oomes said that positive trends have been observed also at mining and
metallurgical enterprises in Armenia thanks to the significant growth
of world copper and molybdenum prices. In addition, devaluation of the
Armenian dram against the US dollar has also had a positive impact on
export opportunities of the country, IMF Resident Representative said.
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Subject: IMF: Economic decline slackening in Armenia
IMF: Economic decline slackening in Armenia
2009-09-09 12:38:00
ArmInfo. The International Monetary Fund experts say economic decline
in Armenia is slackening and positive trends have been observed, Nienke
Oomes, IMF Resident Representative in Armenia, told media on Wednesday.
She said that Armenian economy is over the worst and GDP fall in
Armenia for late 2009 will be lower than for the seven months of 2009
(18.5%). The IMF’s last forecasts for GDP in Armenia are currently
being specified, but some 10%-15% economic decline and 3% average
yearly inflation are expected anyway, Nienke Oomes said. She
highlighted that real estate prices and transactions in this sector
were up in July as compared to the previous month. IMF representative
believes these positive trends very important, for 2/3 of GDP fall in
Armenia is the result of decline of construction scales and the share
of construction in the 18.5% GDP fall for the first 7 months of 2009
was 14.1%. She said that demand for housing is still high in Armenia
and the construction sector will develop in the mid-term outlook.
Nevertheless, Armenian economy was rather dependent on the construction
over the last years. Unfortunately, this sector is subject to wide
fluctuations, and the country’s economy needs diversification. Nienke
Oomes said that positive trends have been observed also at mining and
metallurgical enterprises in Armenia thanks to the significant growth
of world copper and molybdenum prices. In addition, devaluation of the
Armenian dram against the US dollar has also had a positive impact on
export opportunities of the country, IMF Resident Representative said.