Cash flows from Armenia’s partner countries reason for pessimistic forecasts, premier says
20.10.2008,
19:30
The reason for gloomy forecasts of Armenia’s economy is financial flows from the country’s main trade partners, RA Prime Minister Tigran Sargsyan said last week.
YEREVAN, October 20. /ARKA/. The reason for gloomy forecasts of Armenia’s economy is financial flows from the country’s main trade partners, RA Prime Minister Tigran Sargsyan said last week.
“Since the European Union has 60% share in Armenia’s trade, we depend much on the financial situation in the European trade zone,” the premier said, summing up the Armenian delegation’s visit to Washington on October 9-15.
Armenia-EU trade turnover totaled $1,219.3mln in January-August 2008 - 20.5% year-on-year increase. The share of EU in Armenia’s trade was 36.8% in the reporting period. European exports to Armenia rose 9.6% to $392mln. Armenian imports to EU increased by 26.4% to $827.3mln.
“Inflation risks remain high in EU, and the European Central Bank has to lower the interest rate to avoid further economic downturn,” Sargsyan said, stressing the importance of overhauling European and U.S. economies.
“However, the record-low fuel prices in stock markets have no influence on consumer prices due to considerable economic lags,” the premier was quoted saying.
He underlined the Washington debates and talks over 2009 fuel price forecasts.
Sargsyan urged Armenia to keep a vigilant watch over economic developments in Europe, adding setback of import prices will be beneficial for Armenia’s economic programs, as the main reason for this year’s record-high inflation was the hike in import prices.
“If import prices plummet, Armenia’s harsh monetary and credit policy will help curb inflation and the Central Bank will be able to lower interest rates, covering liquidity needs and boosting economy,” the premier said. –0--
“Since the European Union has 60% share in Armenia’s trade, we depend much on the financial situation in the European trade zone,” the premier said, summing up the Armenian delegation’s visit to Washington on October 9-15.
Armenia-EU trade turnover totaled $1,219.3mln in January-August 2008 - 20.5% year-on-year increase. The share of EU in Armenia’s trade was 36.8% in the reporting period. European exports to Armenia rose 9.6% to $392mln. Armenian imports to EU increased by 26.4% to $827.3mln.
“Inflation risks remain high in EU, and the European Central Bank has to lower the interest rate to avoid further economic downturn,” Sargsyan said, stressing the importance of overhauling European and U.S. economies.
“However, the record-low fuel prices in stock markets have no influence on consumer prices due to considerable economic lags,” the premier was quoted saying.
He underlined the Washington debates and talks over 2009 fuel price forecasts.
Sargsyan urged Armenia to keep a vigilant watch over economic developments in Europe, adding setback of import prices will be beneficial for Armenia’s economic programs, as the main reason for this year’s record-high inflation was the hike in import prices.
“If import prices plummet, Armenia’s harsh monetary and credit policy will help curb inflation and the Central Bank will be able to lower interest rates, covering liquidity needs and boosting economy,” the premier said. –0--
