IMF RESIDENT REPRESENTATIVE FORECAST 6.2% INFLATION RATE FOR ARMENIA THIS YEAR

/ARKA/
April 9, 2010
YEREVAN

IMF Resident Representative to Armenia, Mr. Guillermo Tolosa,
predicted a 6.2% inflation rate for Armenia this year.

"The index will be conditioned by lag effect caused by the appreciation
of currency and world prices, specifically the rise in gas prices,"
he told a news conference in Yerevan. ‘Nevertheless, we suppose it
to be a once-only up," he said.

Head of IMF mission in Armenia, Mark Lewis, predicted earlier a 6%
full year inflation rate for Armenia this year. According to the
National Statistical Service, inflation rate was up to 8.8% in 2010
March from the same period of time last year. The Armenian government
projects a 4 ±1.5% inflation rate for 2010.

Mr. Guillermo Tolosa forecasted also a 1.8% GDP growth for 2010,
saying the index may be revised in May, given the positive tendencies
in global economy recovery.

"I believe that some sectors of the Armenian economy will develop more
rapidly and ensure GDP growth, effected by Russia’s economic growth,"
he said, adding that the sectors that have no direct linkage to the
global economy, will show slow growth. "The construction industry,
for example, will not drive the GDP growth," Mr. Tolosa said.

Mark Lewis predicted earlier a 2% full year GDP growth for Armenia ,
while the government projects a 1.2% economic growth.