Armenia’s finance minister predicts 7 percent GDP growth

YEREVAN, December 24. / ARKA /. Armenia’s finance minister Vache Gabrielyan told a news conference today the country’s GDP will have grown this year by 7-7.1%. During an extraordinary Cabinet meeting June 18, President Serzh Sargsyan said the government should work to secure a 7% GDP expansion this year, up from the government-projected 4.2 percent. In 2011 Armenia’s economic expansion was 4.6 percent. 

"Overall, we are satisfied with macroeconomic indicators, backed by high economic growth and low inflation. We are also pleased with the dynamics of growth in industry and exports,’ Gabrielyan said.

According to him, the ministry of finance expects the annual inflation rate to approach the 4 percent target. 

Gabrielyan said also the current deficit of the balance of payments, after its decrease in 2011 by 4%, will remain at the same level of about 10.5%.

"In parallel with this, we have recorded a growth in exports, whose rates will exceed twice the annual rate of imports growth," Gabrielyan said.

According to the National Statistical Service, Armenia’s foreign trade  in January-November this year  increased year-on-year by 3.5% to $ 5.130.7 billion. 

The exports  amounted to $ 1.292.2 billion,  an increase of 6.7% compared to the same period in 2011, and imports  increased by 2.5% to $3.838.5 billion

The minister said virtually all sectors, except for construction, will post growth. According to ArmStat, Armenia's GDP in the third quarter of 2012 amounted to approximately 1.2 trillion drams, an increase of 9.3 percent compared to the same period in 2011. Meanwhile, international experts are more cautious in forecasting Armenian economic growth. Thus, the European Bank for Reconstruction and Development expects Armenia’s GDP to grow by 5%, the International Monetary Fund – by 6.2% and the World Bank predicts by 4.5%. ($ 1 - 407.75 drams). -0-