IMF: Armenia's economic downturn not to surpass double-figure

PanARMENIAN.Net - Armenia's economic downturn will not to surpass a two-digit number, Ninke Omes, IMF permanent representative to Armenia told a news conference today. "According to our estimations, the economic downturn in Armenia will not surpass 10 per cent annually, in particular, it will be around 9.5 per cent, " she said. However, there is some uncertainty conditioned by the global economic crisis and that showing can be higher or lower.



Over the last 5 years the economic downturn in Armenia reached a double-figure, 15.7 per cent compared to the same period of last year. According to Ninke Omes, this sharp downturn has been conditioned by the small size of the Armenian market and a 56 per cent decline in the construction industry.



Saying that an average annual inflation in Armenia will reach 3 per cent, Ninke Omes particularly mentioned, that "inflation rate is lower, than we expected".



As it was expected, devaluation of the national currency in March negatively affect the economy and inflation will icrease, but it is not happened. "Reduction of the world consumer demand and the domestic demand in Armenia enabled to curb the inflation pace, therefore prices for some imported goods even reduced," Ninke Omes said.



According to her, some positive trends are noticed, related to increase in world prices for copper and molibdenium, which will positievly impact the Armenian economy. On the other hand, growth in oil prices positevely influence the Russian economy, which will result in an increased money inflows from Russia, tangibly reduced in a global crises.