Armenian economy undergoing stagnation, experts say

PanARMENIAN.Net - Over the last 7 months, Armenian economy has shown a tendency for GDP growth impairment (4%), caused by 23% slump in agriculture sector in January –July.

“GDP index exceeds the one envisaged by state budget; however it’s a little lower than we expected,” the head of Armenian Ministry of Finance (AMF) Macroeconomic Policy Department Armen Hayrapetyan told a news conference.

AMF’s inflation-related expectations also proved unjustified. “Current level of inflation, 8-9%, is the result of price increase for agriculture products, as well as the upsurge of world prices for bakery products,” the expert noted.

Hayrapetyan gave high assessment to export and import rates, 43% and 22% respectively.

An independent expert Samvel Avagyan, expressed skepticism over the current level of unemployment and social environment in Armenia.

“Armenian economy is undergoing stagnation,” the expert observed.

1,2% economic growth, and 4±1,5% inflation rate are envisaged by the budget in 2010.