Macroeconomic forecasts for Armenia revised

PanARMENIAN.Net - Export volumes increased by 64.3%, totaling $289.8mln, while import amounted to $1.1bln, growing by 24.4%.

Given the favorable economic developments, the government decided to revise its macroeconomic forecasts.

“It seems to be obvious that our anti-crisis efforts have paid off, and growth is gaining momentum in industry. We should be consistent to maintain the pace in 2011-2012,” Prime Minister Tigran Sargsyan said.

The IMF has also reviewed its forecasts for the country’s GDP, predicting 4% growth.

According to RA Finance Minster Tigran Davtyan, inflation control will persist as one of the major problems of Armenia’s economic policy in 2010. “Both the government and the Central Bank of Armenia have already taken action to control inflation, assuming a tough monetary policy,” he said. “The measures were taken to balance the budget, what will allow to tackle social problems.”

Meanwhile, the Central Bank of Armenia and commercial banks are coordinating activities. “It’s corrects, as it’s the demand of the market,” Prometey Bank board chairman Emil Soghomonyan told a PanARMENIAN.Net reporter. “The Central Bank took up an expedient monetary policy, while the banks grant loans with affordable interest rates.”

“Armenian banks are highly marketable and it’s natural that interest rates move downward, so that the banks can distribute capital. Interest rates will fall till the end of the year, making 12-13%,” he said.

Armenia’s former Prime Minister Hrant Bagratyan supposes that the global financial crisis will possibly continue. He named three reasons, due to which the crisis can’t be thought as overcome. First, banks not only grant loans to business, but also become its shareholders; second, largest corporations will not be able to meet their obligations to pension funds; third, inconsistence of currency during budget’s formation.

According to Bagratyan, the new crisis will reach Armenia in six month and its new wave will be stronger that is reasoned by decrease in prices for copper and molybdenum.

Besides, the former PM advised the population to purchase precious metals, specifically palladium, to be able to withstand the crisis challenges.