“This year’s 16.3% economic decline is much more serious than we expected,” RA Deputy Minister of Finance Vardan Aramyan told reporters. He stressed that the Armenian construction sector registered the most serious decline in the first half of this year, with an 11.5% decline registered in the country’s industry.

According to him, the world economy registered a 6% decline. “Neither Russia nor the world market expected such a situation. The International Monetary Fund (IMF) has adjusted its forecasts not in favor of the countries,” Aramyan said. According to him, the IMF has several times adjusted its forecasts for the European Union (EU). Last December the IMF forecast 0.5% economic growth in the EU. Later it forecast a 0.5% economic decline in the EU. The forecast was then adjusted as follows: a 1.5%, 3.2% and 4.2% decline. At present, the IMF forecasts a 4.8% economic decline in the European Union for this year. “So our economic developments are in line with those in Europe,” Aramyan said.

As regards the future of the Armenian economy, Aramyan said certain economic growth is expected to be followed by recovery. As a result, an economic decline of 12-15 per cent can be expected in the country toward the end of this year. The reason for this range is that the Government is “making huge liquid investments in the economy now.” If the economy utilizes the investments, Armenia will register a low economic decline. However, if the process is slow, the decline may reach 15 per cent. Aramyan also pointed out that the Government is implementing an expansionary policy. Expanding on this, he said that, amid the crisis, the private sector tends to reduce expenditures and launches a more conservative policy. Under the circumstances, the Government effects the expenditures, that is, invests funds in the economy. According to Aramyan, the investments are to total 50bln AMD.