Poverty rate in Armenia might increase by 5% and make 25% as a result of global crisis, IMF resident representative Nienke Oomes said while presenting a “Prospects of regional economy development in Caucasian and Central Asian countries” report to Yerevan State University students, Nov. 10.

Income per capita rise and poverty reduction is expected in countries like Azerbaijan, Uzbekistan, Turkmenistan and Kazakhstan, however poverty rate growth will be registered in Armenia, Georgia, Tajikistan and Kyrgyzstan. According to IMF forecasts, the population incomes will decrease by 5%, as private transfers from abroad reduced. “The recession of demand in labor market may entail the unemployment rate increase,” Oomes said.

According to “Armenia’s social arrears and poverty” report, the poverty rate in Armenia last year reduced for 1.5% making 23.5%. Recently a breakthrough in consumer goods was registered, that will boom when gas and electricity prices go up in April 2010.