YEREVAN, June 30. / ARKA /. The International Monetary Fund (IMF) Director for Middle East and Central Asia Masud Ahmed said today in Yerevan that the IMF has improved its forecast for Armenia’s economic growth in 2015 to zero or modest growth from its previous outlook of one percent decline.



Speaking to local journalists Mr. Ahmed said the IMF expects the Armenian economy to show a zero or a very modest growth in 2015, adding also that IMF would be happy to see its forecast to be wrong because the agricultural sector is in a better shape than expected.



Meeting yesterday with Armenian prime minister and president Mr. Ahmed said that considering numerous economic and geopolitical challenges faced by Armenia, the IMF is prepared to provide the necessary assistance to the government.



He told reporters today the IMF predicts a one percent growth for Armenian economy in 2016. According to Mr. Ahmed, the Armenian economy is being affected by negative developments in the region, including economic recession in Russia, the 40% drop in money transfers from Russia and a drop in exports. According to the Central Bank of Armenia, remittances to Armenia in 2014 decreased by 7.5% to $1.73 billion, making 15.7% of the national GDP.



Stressing that Armenia is still reeling from the aftereffects of the 2009 crisis, Mr. Ahmed said the government has 12-18 months to find the "middle ground" between the budget assistance to mitigate the impact of reduced demand and the macroeconomic stability.



Mr. Ahmed pointed out such measures as massive investments, improvement of revenue collection rate, improved business climate, removing obstacles for investors and also creating sufficient number of jobs and opportunities for young people.



He said although macroeconomic management in Armenia is correct, however efforts should be made to promote increased capital and social spending and reducing public debt as further progress in tax administration will provide additional resources for the implementation of these goals.



He said the IMF attaches great importance to further strengthening of Armenia's foreign reserves, maintaining the stability of the banking system and eliminating problems of the energy system.



He said these actions have to be implemented in addition to the infrastructural reforms. According to him, IMF has effectively cooperated with Armenia over the past twenty years, and will continue supporting it.-0-





18:38 30.06.2015