IMF says economic production slash by 1,3%

Today the International Monetary Fund held «Regional economic perspectives: Caucasus and Central Asia» observation review. The IMF Assistant Director of the Middle East and Central Asia Department Ratna Sahay said she is glad to be in Yerevan and deliver a report on the economic indexes.

It deals with the region, as to what impact the economic crisis will have on the economic indexes of the countries.

«You are well-aware that the financial crisis had its impact on all the states and some calculations have been carried out in this view and it appeared that the slash in domestic production worldwide affects the country's economy,» R. Sahay said. She underscored that the highest slash in economic production has been observed in Russia, which affects the region as well.

«Capital inflow into the region also diminishes, along with the decrease in money transfers from abroad. The world market has observed economic production cut by 1,3%, but there is good news, too: next year the index will increase,» R. Sahay noted.

IMF survey shows that among the developed countries Japan has had considerable decline, and in Russia the decline index of 6 is evaluated as «too high».

«One of the causes for economic decline in Russia is decrease of capital flow to the Caucasus and the Central Asia. The export and import indexes in the region are not promising either, though, the situation will get a little better in 2009,» Mrs. Sahay read in her report.

According to R. Sahay, the countries in the Eastern Europe, the Caucasus and the Central Asia are going to have highest slash of all in the economic production.