18.5% decline of Armenian GDP to be reduced to 15% in late
2009, minister of finance forecasts
29-09-2009 20:00:00 | Armenia | Economy
YEREVAN, SEPTEMBER 29, NOYAN TAPAN. "After the release of
preliminary macroeconomic indices for January-August 2009, we
can say with confidence that we have already reached the
lowest point of the economic decline," RA Minister of Finance
Tigran Davtian stated at the September 29 meeting with
reporters. According to him, a 0.1% growth was recorded for the
first time after 18.5% decline of GDP in 8 months.
"It means that we have already reached the lowest point of
the decline, after which, hopefully, a slow recovery of the
economy will begin. This process is quite hard, but I think this
tendency will have a more stable manifestation in the coming
months," the minister said, adding that as a result of that, the
18.5% decline will be reduced to 15% at the end of the year. "I
believe out forecasts are close to reality," T. Davtian noted.
In his words, by attracting loans from outside, the
government managed to maintain the level of expenditures
envisaged by the 2009 budget. Out of the envisaged expenditures
of 945bn drams, expenditures of 900-910bn drams will be incurred
in late 2009, with the sums on social and economic
development-related measures being spent fully.
The minister said it became possible to implement the 2009
budget at the expense of the loans received, to which the fact
that the law passed by the RA National Assembly has allowed to
raise the budget deficit to 7.5% of GDP has contributed as well.
He announced that in 2010 it is envisaged lowering the budget
deficit to 5.6-5.7%.
"We should be more cautious and conservative in 2010. We
want to gradually - year by year - lower the budget deficit to
the international level," T. Davtian noted, adding that the
deficit of Armenia's budget used to be up to 3%.