RA government forecasts minor economic growth in 2010
"In 2010, we expect a minor 1% economic growth in RA," RA Prime Minister Tigran Sargsyan said at CIS Intergovernmental Antimonopoly Policy Council sitting in Yerevan. "Economic downfall is stopped, certain growth tendencies are registered, so the year will be completed at 12-15% downturn rate," he said commenting on the effectiveness of government-implemented anti-crisis policy.
"The policy consists in money-and-credit and budgetary policy expansion, stipulating for budget deficit increase, with CBA decreasing lending rates. As a result, social state budget expenditures grew by 14%, at the expense of external debt increase. Besides, financing was provided for medium and small businesses, construction companies and backbone enterprises."
RA Premier noted that the first wave of crisis did not affect Armenia due to RA banking system's capitalization. He added that according to international structures' assessment, RA banking system is ranked as the most stable compared with other CIS sates.
"The second wave of crisis affected economy's real sector, allowing to reveal its weaknesses, specifically, its strong diversification," Sargsyan noted. "70-75%,of GDP is comprised by construction which couldn't but affect the economic growth. Another factor reflecting the economic slump was a decrease in transfers from Russia, resulting in 18.4% GDP downturn, the greatest among CIS states," the Premier concluded.
"The policy consists in money-and-credit and budgetary policy expansion, stipulating for budget deficit increase, with CBA decreasing lending rates. As a result, social state budget expenditures grew by 14%, at the expense of external debt increase. Besides, financing was provided for medium and small businesses, construction companies and backbone enterprises."
RA Premier noted that the first wave of crisis did not affect Armenia due to RA banking system's capitalization. He added that according to international structures' assessment, RA banking system is ranked as the most stable compared with other CIS sates.
"The second wave of crisis affected economy's real sector, allowing to reveal its weaknesses, specifically, its strong diversification," Sargsyan noted. "70-75%,of GDP is comprised by construction which couldn't but affect the economic growth. Another factor reflecting the economic slump was a decrease in transfers from Russia, resulting in 18.4% GDP downturn, the greatest among CIS states," the Premier concluded.
