Asian Development Bank downgrades outlook for Armenia’s GDP growth in 2015 from 1.6% to 1.2%
YEREVAN, September 22. / ARKA /. The Asian Development Bank (ADB) has downgraded its outlook for Armenia’s GDP growth in 2015 from 1.6% to 1.2% because of ongoing problems in Armenia’s partner countries, according to the Asian Development Outlook. Update, ADB office in Armenia reported.
ADB had already lowered its forecast for the Armenian economy in 2015 in March from 4.6% to 1.6% because of ‘pressures" coming from the Russian economy. According to the current forecast, in 2016 the Armenian economy will grow 2% instead of earlier predicted 2.3%.
"Despite significant economic growth in the first half of the year, growth forecasts for 2015 and 2016 have declined slightly, due to reduced trade, remittances and investments stemming from economic problems in major trading partners of Armenia", the report says.
According to the report, the growth of Armenia's GDP in the first half of 2015 accelerated to 4% from 2.6% in the same period of 2014 and compared to 3.5% in 2014. It says the GDP growth was contributed by all major sectors of the economy, with agriculture being the main driver of growth, along with a slight influence of industry and services.
The report also says devaluation of the dram in late 2014 led to an increase in the average annual inflation rate to 5% in the first 7 months of 2015 against 3.4% in the same period in 2014.
"However, inflation forecasts remain unchanged for 2015 and 2016, as a significant growth in the agricultural sector, weak domestic demand and a rigid monetary policy will lead to a decrease in the rate of inflation in the coming months", - the report says.
The government projection of inflation for 2015 is t 4% (± 1.5%). The GDP growth projection is 4.1%. -0-
ADB had already lowered its forecast for the Armenian economy in 2015 in March from 4.6% to 1.6% because of ‘pressures" coming from the Russian economy. According to the current forecast, in 2016 the Armenian economy will grow 2% instead of earlier predicted 2.3%.
"Despite significant economic growth in the first half of the year, growth forecasts for 2015 and 2016 have declined slightly, due to reduced trade, remittances and investments stemming from economic problems in major trading partners of Armenia", the report says.
According to the report, the growth of Armenia's GDP in the first half of 2015 accelerated to 4% from 2.6% in the same period of 2014 and compared to 3.5% in 2014. It says the GDP growth was contributed by all major sectors of the economy, with agriculture being the main driver of growth, along with a slight influence of industry and services.
The report also says devaluation of the dram in late 2014 led to an increase in the average annual inflation rate to 5% in the first 7 months of 2015 against 3.4% in the same period in 2014.
"However, inflation forecasts remain unchanged for 2015 and 2016, as a significant growth in the agricultural sector, weak domestic demand and a rigid monetary policy will lead to a decrease in the rate of inflation in the coming months", - the report says.
The government projection of inflation for 2015 is t 4% (± 1.5%). The GDP growth projection is 4.1%. -0-