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ARMENIA SAYS CAN HIT ECONOMIC TARGETS DESPITE VIOLENCE
Reuters
May 4 2008
UK
MADRID, May 4 (Reuters) - Armenia can hit economic growth targets
in 2008, a senior government official said on Sunday, playing down
concerns that post-election street fighting had put off foreign
investors.
Ten people were killed in Armenia after mass riots in March and the
International Monetary Fund said the violence could put at risk the
country's target for 10 percent economic growth in 2008.
"I do not see why growth should go down," Armenian Deputy Economy
Minister Vahram Ghushchyan said during a presentation at the Asian
Development Bank's annual meeting in Madrid.
Ghushchyan did not think private investment in Armenia had suffered
since street battles between police and opposition protestors who
were demanding annulment of presidential elections.
"Many investors were dealing with us before the elections and the
same investors are in Armenia after the elections," said Ghushchyan.
Armenia's economy is growing at a double-digit clip that has eased
poverty but stoked inflation to 4.4 percent in 2007.
The Armenian central bank has targeted 4 percent inflation in 2008. The
IMF says the landlocked country may need to tighten monetary policy
further in light of rising global food and energy prices.
Ghushchyan said inflation might overshoot the central bank's target
slightly but Armenia could avoid further interest rate hikes if the
country's dram currency appreciated another 2-3 percent and foreign
investment remained strong.
"It can be achieved through that channel rather than changing the
interest rate," he said. "Inflation may be 4, it may be 5 percent, I
do believe this will be a hard year for any country, not just Armenia."
Inflation rates are rising globally as food and energy costs soar.
The Manila-based Asian Development Bank is owned by 67 members, 48 from
the Asian region. It uses policy dialogue, loans, equity investments,
guarantees, grants and technical assistance in its mission to fight
poverty in the region.
Reuters
May 4 2008
UK
MADRID, May 4 (Reuters) - Armenia can hit economic growth targets
in 2008, a senior government official said on Sunday, playing down
concerns that post-election street fighting had put off foreign
investors.
Ten people were killed in Armenia after mass riots in March and the
International Monetary Fund said the violence could put at risk the
country's target for 10 percent economic growth in 2008.
"I do not see why growth should go down," Armenian Deputy Economy
Minister Vahram Ghushchyan said during a presentation at the Asian
Development Bank's annual meeting in Madrid.
Ghushchyan did not think private investment in Armenia had suffered
since street battles between police and opposition protestors who
were demanding annulment of presidential elections.
"Many investors were dealing with us before the elections and the
same investors are in Armenia after the elections," said Ghushchyan.
Armenia's economy is growing at a double-digit clip that has eased
poverty but stoked inflation to 4.4 percent in 2007.
The Armenian central bank has targeted 4 percent inflation in 2008. The
IMF says the landlocked country may need to tighten monetary policy
further in light of rising global food and energy prices.
Ghushchyan said inflation might overshoot the central bank's target
slightly but Armenia could avoid further interest rate hikes if the
country's dram currency appreciated another 2-3 percent and foreign
investment remained strong.
"It can be achieved through that channel rather than changing the
interest rate," he said. "Inflation may be 4, it may be 5 percent, I
do believe this will be a hard year for any country, not just Armenia."
Inflation rates are rising globally as food and energy costs soar.
The Manila-based Asian Development Bank is owned by 67 members, 48 from
the Asian region. It uses policy dialogue, loans, equity investments,
guarantees, grants and technical assistance in its mission to fight
poverty in the region.