Prime Minister forecasts 2-3% economic growth by yearend

PanARMENIAN.Net - Armenia’s economic growth will reach at least 2-3% as of the end of 2015, Prime Minister Hovik Abrahamyan said at a government meeting on Thursday, May 21, ARKA reports.

Economic activity is posted for the last four months, and the current trends indicate economic growth will be recorded at the end of the year, the premier said.

In particular, a 2.2-2.3% economic growth is seen for the first four months of this year, Abrahamyan said.

He urged to put an end to economic decline allegations. “Some politicians want the government to fail, but in vain – there will be economic growth recorded as of the end of the year,” the PM said.

According to Abrahamyan, the second half of 2015 will provide more evidence for this, as implementation of the planned programs will boost economic activity and the growth.

The mid-term government program suggests a 1% economic growth as of the end of 2015, he said.

“I am sure it will be even higher – 2-3% at least, and we will make a concerted effort to achieve the budgeted 4.1% economic growth level through implementation of the planned programs,” the PM said.

Abrahamyan also said the regional problems were a factor influencing Armenia, but the formers should be prevented from substantially affecting the country’s economy. “We have done our best to achieve economic growth in Armenia,” he said.

Armenia’s National Statistical Service posted a 2.7% economic activity growth in January-April this year, against the same period 2014, according to preliminary data. The budgeted levels are 4.1% for economic growth and 4% (±1.5%) for inflation. The Central Bank of Armenia projection for economy growth is 0.4%-2% for 2015.

Many international organizations have recently lowered their economic projections for Armenia for 2015. In particular, the World Bank put them at 0.8%, EDB’s forecast is 1.6%, ADB’s projection is 1.6%. The IMF expects the Armenian economy to decline by 1% and the EBRD projects a 1.5% decline.

Fitch Agency said in its last review a moderate recession was expected in Armenia in 2015. According to Moody’s, Armenian economy will grow by 2.3%.