FOREX CLUB projection: GDP growth to be 3.7% by end of year
01.11.2010,
22:19
GDP growth is to be 3.7% by the end of this year, analyst of FOREX CLUB Michael Verdyan said.
YEREVAN, November 1. /ARKA/. GDP growth is to be 3.7% by the end of this year, analyst of FOREX CLUB Michael Verdyan said. According to the state budget, GDP growth is expected to be at 1.2% in Armenia this year.
A quite steady growth rate is recorded in the economy of the country, Verdyan told a press conference in “Novosti” International press center Monday.
According to the statistics, gross domestic product grew 2.8% up to 2,386.7 billion drams in Armenia in January-September as compared to the same period of last year.
According to Verdyan, industry, transport & communication and trade are to become the main sectors in the forefront of economic recovery. Growth reached in these sectors over the first 9 months of 2010 was 10.96%, 18.7% and 8.6% respectively.
Verdyan pointed out that the crisis led to a GDP slump in Armenia that was on over five quarters. The GDP drop started in the fourth quarter of 2008 and peaked in the third quarter of 2009, and, finally, it reached 15.1%, the expert said. The main sectors contributing to the slump were construction (42.3% decline in 2009) and trade (4% decline), Verdyan added.
According to the statistics, 14.4% economic decline was recorded in Armenia in 2009.
Lack of traditionally available loan funds was the main reason for the decline in the mentioned sectors, Verdyan said. Industrial growth rates had dropped 12.68% by the end of 2008 because of the reduced internal and external demand in the country, he said.
According to the expert, all the mentioned factors contributed to plummeting exports and private transfers, as well as to abrupt devaluation of dram in 2009.
Main factors scotching the economic growth are high inflation rates, economic decline in agriculture and comparatively high level of Armenia’s national debt, Verdyan said.
7.9% inflation was recorded in Armenia in January-October this year as compared to the same period of last year. According to the state budget, inflation is to be at 4% (±1.5%) in Armenia by the end of 2010.
Aggregate agricultural and fishing output totaled 434.4 billion drams (in current prices) in Armenia in January-September, a reduction of 17.7% compared to the level of the same period of the year before.
Total national debt of Armenia was 1.259 trillion as of the end of June.
According to the preliminary information of the country’s Ministry of Finance, internal debt of Armenia is about 146.5 billion drams and the external debt is 1,112.6 billion drams or $3,027.4 mln. ($1=358.21drams). –0--
A quite steady growth rate is recorded in the economy of the country, Verdyan told a press conference in “Novosti” International press center Monday.
According to the statistics, gross domestic product grew 2.8% up to 2,386.7 billion drams in Armenia in January-September as compared to the same period of last year.
According to Verdyan, industry, transport & communication and trade are to become the main sectors in the forefront of economic recovery. Growth reached in these sectors over the first 9 months of 2010 was 10.96%, 18.7% and 8.6% respectively.
Verdyan pointed out that the crisis led to a GDP slump in Armenia that was on over five quarters. The GDP drop started in the fourth quarter of 2008 and peaked in the third quarter of 2009, and, finally, it reached 15.1%, the expert said. The main sectors contributing to the slump were construction (42.3% decline in 2009) and trade (4% decline), Verdyan added.
According to the statistics, 14.4% economic decline was recorded in Armenia in 2009.
Lack of traditionally available loan funds was the main reason for the decline in the mentioned sectors, Verdyan said. Industrial growth rates had dropped 12.68% by the end of 2008 because of the reduced internal and external demand in the country, he said.
According to the expert, all the mentioned factors contributed to plummeting exports and private transfers, as well as to abrupt devaluation of dram in 2009.
Main factors scotching the economic growth are high inflation rates, economic decline in agriculture and comparatively high level of Armenia’s national debt, Verdyan said.
7.9% inflation was recorded in Armenia in January-October this year as compared to the same period of last year. According to the state budget, inflation is to be at 4% (±1.5%) in Armenia by the end of 2010.
Aggregate agricultural and fishing output totaled 434.4 billion drams (in current prices) in Armenia in January-September, a reduction of 17.7% compared to the level of the same period of the year before.
Total national debt of Armenia was 1.259 trillion as of the end of June.
According to the preliminary information of the country’s Ministry of Finance, internal debt of Armenia is about 146.5 billion drams and the external debt is 1,112.6 billion drams or $3,027.4 mln. ($1=358.21drams). –0--
