IMF EXPECTS GDP TO FALL 15% IN ARMENIA BY END OF YEAR, STABILIZATION IN CONSTRUCTION SECTOR

/ARKA/
September 17, 2009
YEREVAN

YEREVAN, September 17. /ARKA/. The year 2009 has been a very
complicated one for Armenia and real GDP is now expected to reduce
approximately by 15%, head of IMF mission Mark Lewis told a press
conference Wednesday.

Developments in an extremely complicated external environment led
to weakening of the balance of payments and the government finance
aggravating the situation for the Armenian population, Lewis told
journalists Wednesday.

An 18.5% economic recession was recorded in Armenia in January-July
with GDP having amounted to 1,417.1 billion drams ($3,789.6 million).

According to Lewis, 18% decline as of July and 15% GDP compression
by the end of year reflect mainly the decline in construction sector.

The situation is expected to stabilize in the construction sector
by the end of the year; other sectors are also expected to improve,
he said.

Lewis pointed out that the complicated international market situation
has had negative impact on all countries, including Armenia.

Stabilizing prices for goods on international market is a good sign
for Armenian mining industry in particular, he said.

Consistent growth is recorded in domestic services market that has
not suffered a lot during 2009

It is difficult to project, yet some growth is expected in agriculture
as well, Lewis said.

According to Armenian Mini stry of Finance, economic decline is to
be within 10-15% in the country by the end of 2009; the World Bank
expected it to be at 12-14%.