Price increase in Armenia serious challenge

According to Armenia’s PM Tigran Sarkisian, the 2010 GDP of the country grew by 2.6% while it was planned to only grow by 2%. According to the PM, the growth is mainly the result of development in industrial and infrastructural projects. However, there are some shortcomings in the agricultural sector and in the construction business. According to him, the country is diversifying its economy and is developing the construction of motorways, water supply and irrigation systems. The inflation in 2010 was 9.4%, which is high. The PM predicts an increase in consumer prices for 2011 which according to him could be a serious challenge.