IMF raises Armenia inflation forecast
Inflation in Armenia may exceed 5.5 percent by the end of 2009,
says Nienke Oomes, the International Monetary Fund (IMF) Resident
Representative in the country.
According to her, the IMF projected the figure at 5.2 percent several months ago. "But now it seems to us that this was an extremely optimistic forecast and inflation will even exceed 5.5 percent."
Oomes said the Fund expects a 15.6 percent reduction in the South Caucasus republic’s Gross Domestic Product (GDP) by the year-end -- a projection made by the IMF experts in September.
She also said that, based on preliminary estimates, Armenia’s budget deficit will not drop to the level of less than 3 percent reported prior to the economic crisis earlier than in 2013.
The IMF official said the country’s 2010 budget deficit, which has been confirmed at 6 percent of the GDP, is too high but likely.
Meanwhile, the opposition decided to launch protests over the government’s economic policy. Stepan Demirchian, the leader of the People’s Party represented in the Armenian National Congress, sees the cause of Armenia’s economic woes in the government’s inept policy. He believes that the government’s monopoly on imports is the primary factor exacerbating the recession.
"Thus, governing bodies are vested in unprofessional people, who will not bear any responsibility in case of failures," said Demirchian.*
According to her, the IMF projected the figure at 5.2 percent several months ago. "But now it seems to us that this was an extremely optimistic forecast and inflation will even exceed 5.5 percent."
Oomes said the Fund expects a 15.6 percent reduction in the South Caucasus republic’s Gross Domestic Product (GDP) by the year-end -- a projection made by the IMF experts in September.
She also said that, based on preliminary estimates, Armenia’s budget deficit will not drop to the level of less than 3 percent reported prior to the economic crisis earlier than in 2013.
The IMF official said the country’s 2010 budget deficit, which has been confirmed at 6 percent of the GDP, is too high but likely.
Meanwhile, the opposition decided to launch protests over the government’s economic policy. Stepan Demirchian, the leader of the People’s Party represented in the Armenian National Congress, sees the cause of Armenia’s economic woes in the government’s inept policy. He believes that the government’s monopoly on imports is the primary factor exacerbating the recession.
"Thus, governing bodies are vested in unprofessional people, who will not bear any responsibility in case of failures," said Demirchian.*
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