ARMENIAN PREMIER PRAISES ANTICRISIS PROGRAMME RESULTS

Mediamax
April1 2010
Armenia

Armenian Prime Minister Tigran Sargsyan stated in Yerevan today that
the crisis prevention program of the government gave its positive
results.

Speaking at the session of the government, Tigran Sargsian stated
that due to the extensive tax-budgetary and monetary-credit policy,
in the first quarter, 2010, GDP index 2.5 times exceeded the index,
planned by the government for the given period.

According to him, following the results of the first quarter, tax
proceeds to the state budget made 126bn drams instead of the planned
117bn drams, and the social payments – 26bn drams instead of the
planned 22bn drams.

The Armenian prime minister informed that in the accounting period,
the salary in the country increased by 5.8 per cent. Tigran Sargsian
stated that in the first quarter, the increase in export made about
53 per cent, and import – 16 per cent.

"We managed to increase export volume due to growth in industry.

Mining raw materials industry increased by 45 per cent, the
processing industry – by 9 per cent, production of construction
materials doubled. Diamond and gold industry demonstrated high speeds
of growth, and all these sectors were the ones to improve the situation
in export", the prime minister of Armenia stated.

Tigran Sargsyan started that inflation is still the most problematic
issue. "We have entered a stage of quite high inflation speeds and
this is conditioned by the extensive tax-budgetary policy, which,
on the one hand stimulates economic growth, on the other – creates
inflationary pressures", the prime minister noted.

According to him, in February-March, 2010, inflation of 2.9 per cent
was registered. The prime minister noted that the government and the
Central Bank of Armenia possess certain tools to deter inflationary
pressures.

"An agreement is reached with the World Bank, according to which all
macroeconomic indices of 2010 will have neutral influence on inflation,
and if we manage to maintain high speeds in tax collection, we will
also manage to also realize deterring policy", he stated.
From: Baghdasarian