Central Bank: 5.8% economic decline expected in Armenia in 2009

YEREVAN, May 19. /ARKA/. A 5.8% economic decline is expected in Armenia in 2009, says the monetary-credit policy program of the Central Bank of Armenia for the second quarter 2009.

According to the program, previous projections included in the program of the first quarter were reviewed to reflect actual indicators recorded in Q1 2009.

Added value is to reduce by 3% in agriculture in Armenia in Q2 2009 due to decline in crops because of unfavorable climate conditions in the first four months of this year.

A 15-19% compression is expected in added value in construction field due to expected reduction in capital inflow and pessimistic expectations of construction companies.

Real growth of added value is to constitute 2.5% in the services sector though: in this field retail turnover projections were somehow reviewed due to the fact that actual retail trade turnover was lower than the expected level in the first quarter of this year, as well as because of the reviewed projections of domestic demand.

According to the Central Bank, risks connected with reduction of projected economic and GDP indicators may go down depending on amount and speed of anti-crisis programs announced by Armenian government.

Growth risks may be connected with implementation of large-scale regional transport and energy programs.

At the end of this year and in the first quarter of 2010, Armenian economic development trends will be mainly depending on developments in the global economy, as well as on the scope and the pace of the government programs. –0--