YEREVAN, October 10. / ARKA /. The Armenian government expects a four percent inflation in 2012, prime minister Tigran Sarkisian said at the meeting of the National Competitiveness Fund of Armenia. The prime minister is chairman of its Board of Trustees.

"In 2011 we will be able to significantly reduce the inflation rate compared to previous year, in particular, to shift slowly from a 10% inflation environments into a 5% inflation environment, and for 2012 we expect a 4% inflation that may fluctuate within 1.5%," he said.

He cited the latest statistical numbers which say that the country saw a 3.5% GDP growth. The annual GDP growth projection is 4.6%. Tigran Sarkisian said agricultural GDP has recorded a 21% growth from last year.

He then cited a 12-14% growth in industrial sector, a 7% rise in domestic trade and a 4% growth in services. He said also that the foreign trade grew by 25% over the first 8 months with export growing by 30% and imports by 15-18%. According to Tigran Sarkisian, the national currency’s exchange rate is also stable.

The draft budget for 20102 approved by the Cabinet in late September calls for 910 billion drams in revenues and 1.042.5 trillion drams in spending. The projected deficit is 132.5 billion drams. The amount of revenue is projected to increase by 6.8% from this year’s budget (852.4 billion drams). The spending is expected to grow by 41.5 billion drams. -0-