YEREVAN, October 7. /ARKA/. Armenia’s economic growth rates will accelerate to some extent by the end of the year. This statement was made at a Central Bank meeting on September 24.
According to the Central Bank experts, the rates will accelerate due to industrial and agricultural programs, as well as continued large-scale projects in road construction.
Economic growth rates have slowed down in the first half of 2013, compared to the planned levels, according to the report. This was due to lower than expected growth of the global economy and Armenia’s restraining tax and budget policies aimed at reducing gross RA investments and stabilizing the debt, the Central Bank council said.
The council also said the economic growth was 3.5% as of the end of the first half, as compared to 7.5% at the end of the first quarter. Economic activity level rose by 3.8% in January-August 2013, compared to the same period of the year before.
According to the Central Bank, the trend for private consumption growth slow-down was maintained in the third quarter of 2013. This, together with private investment rehabilitation rates continuing to be lower than expected, have led to decline in construction and, consequently, to slow-down of economic growth, according to the report.
The Central Bank experts believe private consumption will rise by 4.5% by the end of the quarter, as compared to the same period of the year before, and private investments will drop by 2.9% against the similar level of 2012.
The council said internal demand has weakened due to slowed-down private consumption and reduced private investments. In addition, the tax and budget policy continues scotching the domestic demand, according to the report.
Armenia’s GDP growth is planned at 6.2% for 2013 under the budget.–0--