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Armenia expects inflation decrease

The government’s relative calmness can be explained by the fact that most of the economic programs that were subsidized are being successfully implemented.

Armenian Prime Minister was waiting for a guest meeting of the government in Vayots Dzor province to tell that the country is entering a deflation period.

PanARMENIAN.Net - “Deflation reported in June 2011 proves Armenia’s return to the inflation trend planned by the Central Bank of Armenia,” the PM stated. “1,4% deflation rate suggests Armenia enters a deflationary development stage to last for the 2 months to come.”

According to National Statistical Service of Armenia, consumer prices index grossed 69,6% in June against May results, while the annual index was 108,5%.

As to Vayots Dzor, the persisting problems here are lack of job opportunities and social ill-being. The damage caused by bad weather conditions in spring totaled AMD 873 million. Industrial production amounted to AMD 2441,5 which is 0,9% of the republic's total index. The major share is winemaking and mineral water production which decreased in the reporting period by 9,1% and 3,6% respectively.

According to official data, 8,5% rise of consumer prices was registered in Armenia in June 2011 being mostly conditioned by increased prices for food and services (13,6% and 2,8% respectively). As compared to May, prices dropped 1,2%.

The government assures that the state debt doesn't affect the country's economic growth. In Vayots Dzor, 2012-2014 Strategic Program for State Debt Management was approved. The document envisages a national debt of USD 1.75 bln in 2011; USD 4 blin in 2012; USD 4.15 bln in 2013 and USD 4.3 bln in 2014. At present, Armenia’s state debt ranges within 40-50% from GDP, without exceeding the level stipulated by the Law on State Debt.

The government’s relative calmness can be explained by the fact that most of the economic programs that were subsidized are being successfully implemented.

Victoria Araratyan / PanARMENIAN News
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