A 15% economic decline will be registered in Armenia this year, Gagik Minasyan, Chairman of the Standing Committee on Finance, Credit and Budgetary Policy, ArmenianParliament, told a press conference.
“9.2 per cent economic growth was forecast for this year, but we have registered an 18 per cent decline due to the economic crisis. We plan to close this year with a 15% decline,” Minasyan said. Some economic growth is expected next year, but the forecasts may prove false. “The analyses show that Armenia has reached the bottom of economic decline, but, unfortunately, we cannot make forecasts about economic growth,” Minasyan said.
Nevertheless, Minasyan said that 1.2% economic growth is possible next year. The reason for the optimistic forecasts is credit investments. The Armenian Government has allocated funds to the construction and mining industries from the attracted credits. The revival of the industries will produce a beneficial effect on the other industries, Minasyan said. He said that Armenia's foreign national debt will reach U.S. $3bn this year, and U.S. $3.5bn next year. “Armenia is negotiating to attract credits now,” Minasyan said, without naming the lending agency. He also pointed out that the unallowable limit of national debt is 50%, but Armenia has not yet reached it. In submitting the 2010 draft budget to Parliament, Armenian Minister of Finance Tigran Davtyan stated that Armenia will not borrow credits in 2010, as it has borrowed a sufficient amount of funds.
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