Macroeconomic indicators in Armenia to have neutral impact on economy in 2010

Macroeconomic indicators in Armenia to have neutral impact on economy in 2010
ARKA, 01.04.2010

Macroeconomic indicators will have neutral impacts on the economy in 2010, Armenian Prime Minister Tigran Sargsyan said at a regular governmental meeting on Thursday.
He said that of all macroeconomic indicators, high inflation rate arouses the greatest concern.
Sargsyan said that unlike January and February’s month-on-month indicators, the 0.8% inflation recorded in March is not bad result.
Armenia recorded 2.9% inflation in March 2010, compared with December 2009, and 8.8%, compared with March 2009.
The premier said that Armenia’s high inflation is also due to expansionary tax, budget and monetary policies.
“And this is natural, since on the one hand, the expansionary policy spurs economic growth, but on the other hand triggers inflation pressures.”
Sargsyan said that the central bank and the government view implementation of measures aimed at curbing inflation as their top-priority objective in the current situation.
The central bank thinks that the efforts to stem inflation will produce some results, and “we’ll somewhat manage to curb inflation pressure and drive inflation rate down”, the prime minister said.
More than that – if tax inflow doesn’t dwindle, Armenian authorities will be able to deter inflation.
Sargsyan also said that the central bank would tighten its instruments to stem inflation pressures.
According to National Statistical Service of Armenia, consumer price index in March 2010, compared with December 2009, was 102.9%, and compared with March 2009, was 108.8%.
In the 2010 state budget, inflation is planned at 4% (±1.5%). M.V.-0---