POVERTY LEVEL REDUCTION OBSERVED IN ARMENIA

ARKA News Agency, Armenia
May 23 2006

YEREVAN, May 23. /ARKA/. A considerable reduction in the poverty
level has been recorded in Armenia as a result of implementation
of the poverty reduction program in 2003-2005, says a report on
the program for 2004 and for the 1st half of 2005 approved by the
Coordinating Council.

During the period under review the situation was generally more
favorable than had been expected under the program. Specifically,
the actual per capita GDP index in 2004 met the forecasts for 2007,
and that for 2005 ($1,524) met the forecasts for 2011.

The poverty level was to be reduced to 39% in 2006, and that of abject
poverty was to be reduced to 7.2% in 2013.

The increase in the poor population’s incomes and the government
expenditure policy remain the principal factor in poverty reduction The
report points out that the poverty reduction policy was a success due
to active involvement of the political community and private sector
as well as of donor organizations.

The RA Government’s strategic program for 2003-2015 envisages the
reduction of poor population from 50% to 19.7%. In the medium-term
period, (before 2006), 6% economic growth is expected, and 5-5.5 per
cent economic growth in the long-term period. Foreign funding of the
strategic program is to make about $1.2bln.