ADB predicts 4% GDP decline for Armenia in 2020September 15, 2020 - 13:09 AMT PanARMENIAN.Net - The Armenian economy will contract 4% in 2020 – down from a previous forecast of 3.5% decline – recovering to 3.5% growth in 2021, the Asian Development Bank said Tuesday, September 15 in an update to its forecasts. The ADB said in April that economic growth in Armenia was projected to slow from "the unusually high rate" of 7.6% achieved in 2019 to 2.2% in 2020 due to the impact of Covid-19. The Bank revised its forecast in July to predict 3.5% contraction, before making the latest prediction of 4% GDP decline. Under Covid-19, the economy reversed 7.0% growth a year earlier to contract by 5.7% in the first half of 2020, the report said. Agriculture grew by only 1.8%, with livestock and crops weak. Industry excluding construction fell by 2.0% as declines in manufacturing, electricity, and water supply outweighed gains in mining and quarrying. Lockdown from mid-March to mid-May postponed investment projects, slashing construction by 30.4%. Services contracted by 4.4% almost across the board. With the pandemic expected to persist through 2020, the ADB update projects recession in 2020 and, with modest recovery expected in Armenia’s trade partners, positive growth in 2021. Inflation has been low, with weak demand at home and abroad, low oil prices, and a fairly stable exchange rate, according to ADB. Azerbaijan is expected to contract by 4.3% in 2020, then post fragile 1.2% growth in 2021. Meanwhile in Georgia, the economy will contract 5% in 2020, before recovering by 4.5% in 2021. 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 | Turkey extends military presence in Azerbaijan The Turkish parliament has adopted a bill submitted by Recep Tayyip Erdogan to extend the mandate of Turkish troops. Russia to begin assessing migrant workers' speaking skills Rosobrnadzor is planning to change the Russian language exam for migrant workers and include an assessment of speaking skills Armenian, Saudi Foreign Minister meet in Riyadh The two commended the positive dynamics of the development of political dialogue between Armenia and Saudi Arabia Pashinyan: Azerbaijan’s proximity shouldn’t worry border residents At the same time, he said that he “does not guarantee [the security of villagers] one hundred percent”. |