Asian development bank: Armenia to have about 2% economic growth in 2010

16.04.2010 18:24
 Asian development bank: Armenia to have about 2% economic growth in 2010

YEREVAN, April 16. /ARKA/. Asian Development Bank predicts about two-percent economic growth in Armenia in 2010.

In its report, the bank says that economic growth in Armenia will depend on economic rally in Russia, since Armenian labor migrants’ money transfers from Russia to Armenia is a necessary factor for economic development.

Tax and budget policy in Armenia will be gradually tightened due to concerns over repayment of foreign debt.

Tax and budget policy is expected to remain weak, and taxes will gradually grow.

Asian Development Bank also predicts 4.5% inflation despite the expected rise in prices for utilities, transport and consumer goods due to the recent 17% increase of the price for natural gas imported from Russia.

Exports are expected to grow 5.2% in 2010 and reach 11.8% in 2011 thanks to growth in diamond, chemical and metallurgy industries.

Imports are predicted to grow 4.7% in 2010 and 5.1% in 2011.

The report says that in recent years, Armenian economy became more open for trade and investments, though global recession has stuck hard at the country.

The government admits the presence of oligopolies in key sectors if the economy. These oligopolies are closely connected with political elite.

Asian Development Bank says that to improve business environment the government will keep combating corruption and intensifying protection of citizens’ rights.

In the 2010 state budget GDP growth is planned at 1.2%.

European Bank for Reconstruction and Development, International Monetary Fund and World Bank say economic growth in Armenia will be within 2% in 2010.

In 2009, Armenia had 14.4% economic decline, compared with 2008.-0--


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