EDB lifts Armenia GDP growth outlook to 2.6%July 15, 2016 - 12:19 AMT PanARMENIAN.Net - Citing Armenia’s economic activity index growth, the Eurasian Development Bank (EDB) has revised upwards its outlook for the country's GDP growth in 2016 from its previous assessment of 2-2.5% to 2.6%, ARKA reports. According to EDB’s latest Macroeconomic Overview, the economic growth in Armenia in the first quarter of 2016 was higher than expected. The Macroeconomic Overview notes that the increase in production capacities and in basic exports, despite unfavorable prices at international commodity markets and weaker external demand, were instrumental in securing 4.4% year-on-year GDP growth in quarter one of 2016. In April 2016, the economic activity index grew to 6.8% against the same period in 2015, securing a 6% growth for the first four months of 2016 in annual terms. According to the National Statistical Service of Armenia, economic activity index in January-May amounted to 5.5%. "Despite an increase in public and private sector salaries, the recession in the Russian Federation will hold back recovery in consumer demand due to the reduction of factor incomes and remittances," the EDB says. According to EDB analysts, weak domestic demand, the growth in mining industry output and increase in exports will remain the main drivers of economic expansion in Armenia in 2016. EDB also says the lowering of the refinancing rate in May 2016 to 7.75% by Armenian central bank was aimed at supporting domestic demand, along with measures taken by the government to encourage investments and lending. In the medium term perspective the revitalization of domestic demand and the implementation of infrastructure projects are expected to push economic growth up to 4.2% in 2017 and 4.1% in 2018, according to EDB. The Armenian government’s projection of GDP growth for 2016 is 2.2%. World Bank’s and IMF’s forecasts is 1.9% Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Scholz hopes Armenia-Azerbaijan peace treaty will be signed this year German Chancellor Olaf Scholz hopes that a peace treaty between Armenia and Azerbaijan will be signed this year. Ucom equips four bus stops in Ijevan with free Wi-Fi Ucom now provides free Wi-Fi coverage in smart bus stops in four communities of Ijevan. Armenians stage more campaigns against territorial concessions to Azerbaijan Protesters blocked more roads across Armenia on Friday, April 26 in continuing attempts to scuttle territorial concessions to Azerbaijan. Czech-Armenian military cooperation discussed in Yerevan A delegation led by the Director General for the Industrial Cooperation Division of the Ministry of Defence of the Czech Republic visited Armenia. |