30% drop in state budget deficit had positive impact on Armenia’s financial stability

 April 26, 2011 - 17:50 AMT

PanARMENIAN.Net - Head of the Financial Stability and Development Department at the Central Bank of Armenia (CBA) Vahe Vardanyan said that trends in global financial and commodity markets, as well as developments in neighboring countries in 2010 were favorable for Armenia.

They had a positive impact on the country, Vardanyan said during presentation of the CBA 2010 Report on Armenia’s Financial Stability.

Armenia’s economic growth would have been much higher, if it were not for 15% drop in agriculture.

Vardanyan noted that, according to clarified data, 2.1% increase was recorded in Armenia’s economy in 2010, including 9.5% growth in industry, what is an evidence of industry’s recovery after the crisis. According to him, 28% increase was recorded in loans allocated to business entities in 2010 that facilitated industry’s recovery.

Besides, 30% drop was recorded in the state budget deficit in 2010, what in its turn had a positive impact on financial stability, said Vardanyan.

As for the inflation rate, it totaled 9.4% by the end of 2010 that is basically conditioned by growth in prices in external markets.