IMF PROGNOSES 1.2% GROWTH OF ECONOMY IN ARMENIA IN 2010

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Economy

13.10.2009, 01:19

IMF prognoses 1.2% growth of economy in Armenia in 2010 with economic decline of 15% in 2009, said Ambroise Fayolle, Executive Director of IMF during the press-conference on Monday in Yerevan.

YEREVAN, October 12. /ARKA/. IMF prognoses 1.2% growth of economy in Armenia in 2010 with economic decline of 15% in 2009, said Ambroise Fayolle, Executive Director of IMF during the press-conference on Monday in Yerevan.

“The crisis had affected Armenian economy greatly. According to the prognosis of the Funs, economic decline in the country will make 15%, foreign investments and foreign transfers have been reduced, as well as tax entries which weakened the payment balance and the volume of state resources”, said Fayolle.

He said that IMF is more optimistic in this issue than the Government of Armenia.

“Armenia is one of the countries which are having great difficulties after the crisis. We hope that we will be mistaken in the prognosis of decline of economy in 2009 and the decline will be less than our prognosis”, said Fayolle.

He said that in this context IMF and other international funding organizations assisted Armenia in overcoming financial difficulties. Particularly, at the beginning of the year IMF approved the cooperation program of $500 million, after which in June by the decision of the Board of Directors the amount was increased up to $823 million.

“The given resources will help Armenian authorities to soften the consequences of crisis, especially in maintaining and implementation of the whole volume of social payments to vulnerable population, as well as parallel implementation of set of reforms”, said Fayolle.

As to the prognosis for 2010, the Executive Director mentioned that on the account of the implemented policy of the Government of Armenia, monetary-credit and tax-budgetary policy and international assistance, Armenia will rehabilitate and by the results of 2010 an increase of about 1.2% will be recorded.

He said that inflation will be in the frames of the indicator envisaged by the Government of Armenia - 4% (±1.5%). According to the prognosis of the Government of Armenia economic decline in the country by the results of 2009 will be 12-15% and in 2010 an increase of 1% is expected.--0--