YEREVAN. – The budget stems from the existing situation and expectations, Armenia’s former Central Bank Chairman Bagrat Asatryan stated during a press conference on Friday.  

“2012 will be a difficult year for economy. We are [together] with the world, but sadly look toward one direction: Russia, whereas Russia’s realities impact us. Russia likewise has reduced expectations,” he noted.

Asatryan expressed a hope that in the coming year we would have a steady growth in financial flow and the level of private remittances would reach pre-crisis level.  

“In terms of next year’s budget, let me tell you that we started the discussions a bit soon, as the Government has not yet fully opened its deck of cards. 

They plan an inflation stabilization of up to 4 percent, and an economic growth.

Next year the axis of growth ought to be industrial growth, whereas the authorities again plan on securing growth in construction,” the economist maintained. 

“What I am saying is becoming a reality: 4-5 percent economic growth and high inflation. I have the latest data in my hands: Over-8-percent inflation is registered. 

Consumer price increase is 10.2 percent, [and] food product price increase constitutes 13.5 percent. This is particularly difficult for the socially vulnerable strata,” Bagrat Asatryan concluded.