IMF expects GDP to fall 15% in Armenia by end of year, stabilization in construction sector

IMF expects GDP to fall 15% in Armenia by end of year, stabilization in construction sector
ARKA, 17.09.2009

The year 2009 has been a very complicated one for Armenia and real GDP is now expected to reduce approximately by 15%, head of IMF mission Mark Lewis told a press conference Wednesday.

Developments in an extremely complicated external environment led to weakening of the balance of payments and the government finance aggravating the situation for the Armenian population, Lewis told journalists Wednesday.

An 18.5% economic recession was recorded in Armenia in January-July with GDP having amounted to 1,417.1 billion drams ($3,789.6 million).

According to Lewis, 18% decline as of July and 15% GDP compression by the end of year reflect mainly the decline in construction sector.

The situation is expected to stabilize in the construction sector by the end of the year; other sectors are also expected to improve, he said.

Lewis pointed out that the complicated international market situation has had negative impact on all countries, including Armenia.

Stabilizing prices for goods on international market is a good sign for Armenian mining industry in particular, he said.

Consistent growth is recorded in domestic services market that has not suffered a lot during 2009

It is difficult to project, yet some growth is expected in agriculture as well, Lewis said.

According to Armenian Ministry of Finance, economic decline is to be within 10-15% in the country by the end of 2009; the World Bank expected it to be at 12-14%. N.V. –0--