CENTRAL BANK OF ARMENIA EXPECTS MEDIAN NOMINAL WAGE TO GROW BY 7 PERCENT IN 2011 APRIL-DECEMBER

/ARKA/
May 11, 2011
YEREVAN

YEREVAN, May 11. / ARKA /. Median nominal wage in Armenia is set to
grow by 7 percent in 2011 April-December, the Central Bank of Armenia
(CBA) has projected in its Program of Money and Credit Policy for
the second quarter of 2011.

The report says wage rise is expected both in public and private
sectors due to rebounding economy. It says wage rise dynamic will
be maintained through the first quarter of 2012. It also predicts a
growing demand for labor force in industrial and services sectors on
the back of lasting economic expansion. This is supposed in turn to
result in reduced unemployment level which the Central Bank says may
drop by 0.5% in 2011 to 6.6%.

The unemployment level will continue to fall in the first quarter
of 2012 to 6.4% to near the pre-crisis level. The report says also
developments at the labor market in 2011 April-December time span
will bring about weak inflationary pressure on the consumer market
(inflation may rise by 0.2 p.p.) as the cost of a work force unit
in the private sector may rise by 3%, however, the report says the
anticipated inflationary pressures at the labor market will be weaker
if compared to the second half of 2010. The pressure is expected to
weaken further in the first quarter of 2012 due to slower growth of
the cost of one labor force unit in 2011.

From: A. Papazian