ARMENIA ENTERS RECOVERY STAGE: PRIME MINISTER

/ARKA/
April 22, 2010
YEREVAN

YEREVAN, April 22. /ARKA/. Armenian prime minister Tigran Sarkisian
said today the country’s economy was out of the crisis and back to
recovery track.

Speaking at a recurrent Cabinet session he cited the latest figures
of the National Statistical Service according to which the economic
recovery continued to accelerate in March resulting in a 5.5% GDP
growth in the first quarter. The prime minister singled out a 10%
industrial output growth, a similar growth in energy production and
a 3.2% growth in agriculture.

The construction sector, once a key engine of growth, was the
only sector that dropped in the first quarter by 0.6% to 46.7
billion Drams. The year-on-year growth rate reported by the National
Statistical Service was up from 3.1% reported in January-February. The
government predicted last November that the economy, which contracted
by 14.4 percent in 2009, will expand by only 1.2 percent this year.

Late last month it revised the full-year forecast upwards to 1.8
percent.

According to the prime minister, the latest numbers testify
to diversification of the economy and its reduced dependence of
construction sector growth, but on the other hand they also mean that
private investors are not in a hurry to invest in this sector. The
premier downplayed a popular belief that the government finances
construction sector by reminding that 75% of investments last year
into construction came from private investors.

The prime minister also singled out a 6% growth in services, a 60%
growth in exports and a 23% growth in imports. He also said IT sector
grew by 3%, while production of building materials was up by 50%
and the mining sector posted a 21% growth.

The chemical industry posted a 2.5% growth, the jewelry sector rose
by 40% and production of equipment was up by 15%. Prime minister
emphasized also a 5% tourism growth. According to him, the accelerating
growth was due to the government’s anti-crisis measure.

He also added that `the entire world is emerging from the recession.’
($1 – 393.23 Drams).