Prospects for the Armenian economy in 2009

Prime Minister Tigran Sarkisian told the Armenian Parliament on October 24 that the country’s budget for 2009 will be around USD 3.3 billion and GDP growth will reach 9.2%.

The budget envisages a 20% increase in imports and 10% increase in exports. Armenia has a total debt of USD 2.2 billion The deficit in the 2009 budget will be only around USD 13 million which the PM says is a fine achievement for Armenia.

Armenia’s major problem is a negative trade balance. It imports almost four times more than it exports. Its population is generally supported by an inflow of funds from Armenians living overseas. But recently the world crisis has forced the Armenian Diaspora to donate almost double the usual amount to rescue their fellow Armenians still living in the country.