Actual reduction of added value in construction of Armenia towards end of 2009 to be 40-50% - central bank

Actual reduction of added value in construction of Armenia towards end of 2009 to be 40-50% - central bank
ARKA, 30.07.2009

The Central Bank of Armenia has revised the forecast for such industries as construction and services, which constitute a substantial share of the GDP, and lowered its expectations.

Consequently, the actual reduction of added value in construction in Armenia by the end of 2009 will be 40-50%.

As it was reported in the Program of the Monetary Policy of the CBA in the 3rd quarter of 2009, this was going to happen despite the gradual reduction in the rate of decline in construction conditioned by financial support from the government.

In the first half of 2010, the downturn in the construction will continue. However, by the end of half-year there will be a positive growth indicator.

The revision of the forecast is due to the expected reduction in capital flows and incomes, as well as a significant decline in residential construction.

According to CBA’s forecast, a zero real growth of added value is expected in 2009.

However, in the first half of 2010, it is expected to restore the services, with a real growth of 1-4%.

The CBA states that such predictions depend on specifying the forecasted indicators of private and public consumption, which affect both the volume of turnover and other volumes of the services provided. --0--