Macroeconomic forecasts for Armenia revised
Tigran Sargsyan: we should be consistent to maintain the pace in 2011-2012

The National Statistical Service has published the data for
January-April 2010, according to which, 7.2% GDP growth was recorded
in Armenia as compared with the same period of 2009. The GDP amounted
to AMD 777.6bln in April. Besides, 8% growth was recorded in consumer
prices in the reported period as compared with the 2009 index.

May 22, 2010
PanARMENIAN.Net –

Export volumes increased by 64.3%, totaling $289.8mln, while import
amounted to $1.1bln, growing by 24.4%.

Given the favorable economic developments, the government decided to
revise its macroeconomic forecasts.

`It seems to be obvious that our anti-crisis efforts have paid off,
and growth is gaining momentum in industry. We should be consistent to
maintain the pace in 2011-2012,’ Prime Minister Tigran Sargsyan said.

The IMF has also reviewed its forecasts for the country’s GDP,
predicting 4% growth.

According to RA Finance Minster Tigran Davtyan, inflation control will
persist as one of the major problems of Armenia’s economic policy in
2010. `Both the government and the Central Bank of Armenia have
already taken action to control inflation, assuming a tough monetary
policy,’ he said. `The measures were taken to balance the budget, what
will allow to tackle social problems.’

Meanwhile, the Central Bank of Armenia and commercial banks are
coordinating activities. `It’s corrects, as it’s the demand of the
market,’ Prometey Bank board chairman Emil Soghomonyan told a
PanARMENIAN.Net reporter. `The Central Bank took up an expedient
monetary policy, while the banks grant loans with affordable interest
rates.’

`Armenian banks are highly marketable and it’s natural that interest
rates move downward, so that the banks can distribute capital.
Interest rates will fall till the end of the year, making 12-13%,’ he
said.

Armenia’s former Prime Minister Hrant Bagratyan supposes that the
global financial crisis will possibly continue. He named three
reasons, due to which the crisis can’t be thought as overcome. First,
banks not only grant loans to business, but also become its
shareholders; second, largest corporations will not be able to meet
their obligations to pension funds; third, inconsistence of currency
during budget’s formation.

According to Bagratyan, the new crisis will reach Armenia in six month
and its new wave will be stronger that is reasoned by decrease in
prices for copper and molybdenum.

Besides, the former PM advised the population to purchase precious
metals, specifically palladium, to be able to withstand the crisis
challenges.

Victoria Araratyan / PanARMENIAN News

From: Emil Lazarian | Ararat NewsPress