YEREVAN, OCTOBER 8, NOYAN TAPAN. Armenia is expected to have a double-digit growth of GDP this year too - thanks to the high activity in the construction sector, is said in the section on Armenia of Grant Thornton company's International Business Report 2008, which was presented on October 8 by Gurgen Hakobian, Armenian representative of the company. By the report, based on the high food import prices and international oil prices, as well as on the great domestic demand it can be expected that in late 2008 the consumer price index will make about 7%, exceeding the announced inflation index of 4%. Nevertheless, according to G. Hakobian, this index is lower as compared with those of neighboring countries, and it is expected that in 2009 it will decline and remain within the announced limits. This year's budget will have a deficit in the amount of 1.2% of GDP, as a result of which the real appreciation of foreign currency will become possible. It is noted in the report that in the majority of the 34 countries studied, enterprises of the private sector are optimistic about the prospects of the year. It is the fifth year that India tops the table as a country which is most optimistic about the economy, while Japan is at the bottom due to its pessimism. The enterprises of Armenia's private sector are more optimistic about the results of 2008 than last year. The level of optimism concerning profitability has exceeded the world average, while the level of optimism about export is slightly lower than the world average. The index of real growth of the employment was lower in Armenia than was forecast in 2007. As regards the importance of the factors decisive for international investments, the size of an economy and its development potential are important for Armenian as well as international entrepreneurship. The number of exporting enterprises in Armenia (34%) is below the world average (39%) and the 2007 index of 36%. The number of importing enterprises makes 72% in Armenia, exceeding the world average of 39%. Two thirds of Armenian businessmen see their rivals in the domestic market. This index exceeds almost two-fold the world average. Enterprises of Armenia's private sector (83%) and international businessmen (70%) consider the quality of products and services as their greatest competitive advantage. 75% of Armenian enterprises consider human resource and skilful workforce as the main competitive advantage - as compared with the world index of 55%. It is noteworthy that surveys are conducted by Grant Thornton's representatives in various countries. The company operates in more than 100 countries. An increasing number of countries is being involved in surveys with every passing year. It is the second year that Armenia has participated in studies.

---