The World Bank estimates that global GDP, which expanded by 3.9% in 2010, will slow to 3.3% in 2011, before it reaches 3.6% in 2012. Developing countries are expected to grow 7% in 2010, 6% in 2011 and 6.1% in 2012. They will continue to outstrip growth in high-income countries, which is projected at 2.8% in 2010, 2.4% in 2011 and 2.7% in 2012.
In an assessment of the global economy at the end of 2010, and the prospects for 2011, IMF said that countries should continue to focus on rebalancing their economies in the coming year, including structural measures and exchange rate adjustments.
Jean-Michel Happi, the World Bank Country Manager for Armenia, said that certain rehabilitation was witnessed of Armenia’s economy in 2010, with the country’s 2.4% GDP growth.
“However, we hope that as a result of implementation of the current program of reforms and tax-budgetary and debt consolidation, as well as due to improvement of the business environment in case of favorable climatic conditions, the GDP growth will amount to 4-5% in Armenia in 2011,” Happi said.
According to him, Armenia’s economy still has many weaknesses, what is proved by the decline in agriculture in 2010 and recession in the construction industry during the crisis as a result of drop in remittances.
“Stimulation of the most vulnerable fields of economy is the main challenge currently that will allow increasing the economic growth due to the private sector,” he said.
Happi forecast a dramatic drop in medium price index, with 4-5% inflation rate.
“9,4% inflation registered in 2010 was caused by food products’ price upsurge, as well as high tariffs for transport, grain crop and raw materials,” he said.
Meanwhile, Armenian Prime Minister Tigran Sargsyan said that after the global financial crisis it is evident that the world will not return to its pre-crisis economic model. However, the new model has not been developed yet, what is a serious challenge, Sargsyan told a government sitting. 2011 will be a year of hard work, economy’s rehabilitation and diversification, according to him.