New Armenian President To Receive Sound Economy

NEW ARMENIAN PRESIDENT TO RECEIVE SOUND ECONOMY

ARKA
April 4, 2008

YEREVAN, April 4. /ARKA/. "If the economic situation in Armenia is
assessed in conformity with the 2007 indices, I am handing over a
sound economy to the new head of state Serge Sargsyan," RA President
Robert Kocharyan told reporters.

The RA Statistical Service reports that 10.1% economic growth was
recorded in Armenia in January-February 2008 as compared with the
corresponding period last year. During the period under review,
221,550.2mln AMD GDP was recorded (in current prices). 10% GDP is
budgeted in Armenia for this year.

Armenia’s economy is steadily developing. Some recession has been
recorded, but only in trade in March alone, Kocharyan said. "I think
it is normal in the context of the domestic political situation,"
Kocharyan said.

However, all the problems are being resolved, and Armenia has serious
potential to end the year with rather serious indices.

"We should consider the fact that global economy is experiencing a
recession, which may influence the economic growth rates in Armenia.

However, I would like to assure you that, even under the circumstances,
we can pursue a policy and find solutions that will prevent the global
economic recession from affecting Armenia," Kocharyan said.

He pointed out that an unstable domestic political situation or similar
global trends produce amore serious impact on developed capital and
securities markets.

However, this sector is underdeveloped in Armenia, the country has
not a completely formed securities market and investments are mainly
made in the real economic sector. These investments will never vanish,
be it the banking sector or the metal mining industry, Kocharyan said.

He pointed out that a waiting attitude may to a certain extent be
shown, and lower business activity in the trade of durables may
be recorded.

"However, I think that the businessmen trying to secure themselves
against risks may sustain serious losses. On the contrary, they need
to be rather active on the market, and they will only benefit from
that. To elaborate on the subject, I do not see any problems for
Armenia for the near future," Kocharyan said.

He pointed out that every country see such phenomena every 10-15 years,
but it must be strong enough to get out of the situation even stronger,
which will be the case with Armenia.

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