IMF forecasts 5% GDP drop in Armenia by end-2009

IMF forecasts 5% GDP drop in Armenia by end-2009
11.05.2009, ARKA

The International Monetary Fund (IMF) forecasts up to 5% GP drop in Armenia by end-2009, IMF Mission Chief for Armenia Mark Lewis said today presenting the Regional Economic Outlook: Caucasus and Central Asia Report.

IMF previously forecast a 4.5% inflation and minus 1.5% economic slowdown in Armenia by end-2009.

Gloomier forecasts are due to a considerable slowdown in Armenia’s construction sector in 2009, the IMF mission chief said, citing last year’s economic boom in Armenia.

According to the short-range forecasts of the organization, Armenia is likely to post a considerable drop in mining industry, due to the tumbling prices of metal in the global market.

However, Lewis cited stabilization of the situation in Armenia in 2010, thanks to which the country will post a zero growth.

Citing a 6.1% quarterly drop in economy, IMF Resident Representative in Armenia Ninke Oomes said the organization forecasts 3.6% inflation in the country this year, compared to 7.2% in 2010.

According to IMF, Russia is likely to post a record economic slowdown of minus 6% (IMF forecasts a 0.5% GDP growth in Russia in 2010) and the economic growth is supposed to be minus 1.3%.

According to WB forecasts, Armenia is likely to post zero economic growth by end-2009.–0--