ARMENIA’S ECONOMY ENTERED STABILIZATION PHASE: RA FINANCE MINISTER

news.am
Dec 29 2009
Armenia

"2009 was a peculiar year – complicated and full of trials," RA
Finance Minister Tigran Davtyan stated at the Dec.29 press conference,
adding that "The year was difficult as country’s economy did not
experience such problems since nineties. It was definitely stipulated
by financial crisis and global regress, however we managed to come
out of a difficult situation with credit, preserving financial and
macroeconomic stability and continued the reforms though not in as
much as planned."

According to Davtyan, presently country’s economy entered stabilization
phase and will be back to development course in 2010.

Finance Minister underlined that in 2009 economic recession indicator
reached 15%, inflation — 5.5%, though growth in several aspects
was registered. The volume of retail trade increased by reduction of
shadow economy through application of cash tills. Overall the salaries
increased by 11%, and in public sector — by 16%.

Davtyan hailed positive the fact that budgeted expenditures 2009
are met and with no debts. Commenting on the remark that despite the
projected AMD 945bn expenditures, only AMD 900bn are met and GDP totals
AMD 8bn against the projected 12bn, Davtyan said, "If expenses of AMD
900bn out of 945bn are met, budget might be considered completed as
savings are set aside each year. Expenditures have never been fully
met. Surely, they are made at the expense of deficit raise and external
funds, but most significantly there is undebtedness."