IMF projects 4.2% GDP growth for Armenia in 2012

ARKA, 21.09.2011

In its latest World Economic Outlook the International Monetary Fund (IMF) emphasizes that growth in the CIS region has been supported by strong commodity prices, but downside risks have risen with the global slowdown. The growth in Armenia is projected to reach about 4.3 percent in 2012 and inflation 3.3 percent.

The GDP and inflation projections for 2011 are 4.6% and 8.8% respectively.

The economic growth forecasts for Uzbekistan are 7.1% for 2011 and 7.0% for 2012 , for Georgia the forecasts are 5.5% and 5.2% respectively , the forecasts for Tajikistan are 6.0% and 6.0% respectively, the GDP growth for Kyrgyzstan are 7.0% and 6.0% and 7.0% and 4.0% for Moldova.

The IMF also projects that inflation in Uzbekistan in 2011 will be 13.1% and 11.8% in 2012, in Georgia it will be 9.6% and 5.0% respectively, in Tajikistan - 6.0% and 6.0 %, in Kyrgyzstan - 19.1% and 9.4%, while in Moldova - 7.9% and 7.8%.

Among other CIS countries the highest GDP growth in 2011 and 2012 is expected in Turkmenistan (9.9% and 7.2%, respectively), while the smallest in Azerbaijan - 0.2% and 1.2% in Belarus in 2012.

The highest inflation rate, according to IMF forecasts, in 2011 and 2012 will be registered in Belarus (41% and 35.5% respectively), while the lowest in Turkmenistan (6.1% and 7.2%).

The IMF also warned that the global economy has entered what it called "dangerous new phase" because of the eurozone debt crisis and the fragile economic position of the United States, the world's biggest economy. The IMF said issues surrounding the United States and eurozone economies could drag them into another recession. According to IMF, these two regions represent the greatest threat to global economy. "Political deadlock has increased uncertainty and financial instability that transfers to the real economy," IMF said.

The global economy is seen expanding by four per cent in 2011 and 2012. In its previous report, the fund had forecast a 4.3 per cent improvement in 2011 and 4.5 per cent in 2012. -0-