THERE WILL BE NO TWO-DIGIT ECONOMIC GROWTH IN ARMENIA IN COMING YEARS, IMF REPRESENTATIVE FORECASTS

NOYAN TAPAN
NOVEMBER 12, 2009
YEREVAN

YEREVAN, NOVEMBER 12, NOYAN TAPAN. The loans provided by the
International Monetary Fund (IMF) to Armenia are usually used by the
Central Bank of Armenia (IMF) for replenishing its international
reserve fund, the IMF Representative to Armenia Nienke Oomes said
at the November 12 press conference. According to her, the Executive
Board of the IMF on October 30 approved a tranche of 60 million USD
to Armenia, which will also be provided for the replenishment of
the CBA’s reserve fund. N. Oomes announced that 480 million of the
promised 820 million-dollar loan has already been allocated to Armenia.

Commenting on the economic situation in Armenia, N. Oomes noted that
in the first nine months of 2009, GDP contracted by 18.3% which is a
"negative index". However, the decline stopped in September and a
1.7% growth was recorded. The GDP growth will be maintained in the
next three months, she forecast. In her words, the 18.3% decline in
GDP was caused by difficulties in construction sector in connection
with the global crisis. Another cause, according to her, is that
being cautious of the crisis, people stopped making investments in
the real estate market.

N. Oomes said the state revenues considerably fell in Armenia in the
first nine months of 2009 due to the financial and economic crisis. In
addition, there was a growth in state expenditures, and as a result,
the budget deficit increased to 7.5%. She forecast that in 2010,
the budget deficit will make up 5.8% of GDP, while GDP growth will
make 1.2% in 2010 and 3% in 2011. She said no double-digit economic
growth is expected in Armenia in the coming years.