Armenia's economy remains strong amid global economic recession: IMF

YEREVAN, November 19. /ARKA/. The worsened global macroeconomic outlook has increased uncertainty, but Armenia is in a strong position to withstand the impact of the global economic downturn, IMF Deputy Managing Director and Acting Chair Murilo Portugal said.

The Executive Board of the International Monetary Fund (IMF) has approved a three year, SDR 9.2 million (about US$13.6 million) arrangement under the Poverty Reduction and Growth Facility (PRGF) for the Republic of Armenia to support the government's economic program through 2011. The decision enables the country to draw an amount equivalent to SDR 1.31 million (about US$1.9 million) from the IMF.

After the successful conclusion of its third PRGF-supported program in May 2008, Armenia's economic performance has remained very strong, Portugal said, adding the economic progress has contributed significantly to poverty reduction.

“Inflation has increased in the wake of rising international food and fuel prices and growing domestic demand pressures, although it remains lower than in other CIS countries. Adherence to prudent macroeconomic policies and the progress made in structural reforms has helped to achieve these results,” the IMF chair was quoted saying.

He stressed the importance of focusing on business environment and domestic competition. “In this regard, the completion of the unfinished tax policy and administration reform agenda is particularly important,” Portugal concluded.

On May 19, IMF summed up the sixth monitoring of Armenia’s macroeconomic indicators. The monitoring was part of the PRGF Program. Allocations of IMF for Armenia’s poverty reduction program total SDR 23million ($37.3 million). Z. Sh. –0--