Armenia’s finance minister has predicted a slowdown in the pace of contraction of Armenia’s gross domestic product (GDP) that made 18.5 percent during the period of January through July.
Tigran Davtian also repeated that the government thinks it inappropriate and does not intend to sequester the state budget, but added that “nothing can be ruled out.”
Talking to the media on Friday, the minister predicted an improvement in macroeconomic showings beginning in September-October.
“And we will have a decline of a tangibly smaller size at the end of the year,” stressed Davtian.
Davtian also said that tendencies for economic recovery observed in a number of the world’s large economies may bode well also for Armenia.
“On a yearly basis we will have a fairer result. According to some forecasts, Armenia may close the year with a 10-15 percent GDP decline. We also expect a gradual economic recovery to start next year, and we forecast a 1-1.5 GDP growth in 2010.”
Davtian reiterated the position of the government that so far has been reluctant to sequester the 2009 state budget that was approved last year on a 9.2 percent GDP growth projection, shortly before Armenia began to feel in full measure the fallout of the global economic recession.
The minister described the fulfillment of the existing budget as ‘consonant with Armenia’s current economic situation’.