Armenia's economy is expected to see 7.1% growth in 2019, central bank official says
05.11.2019,
16:41
Armenia's economy is expected to see 7.1% growth this year, Vahagn Grigoryan, head of a Central Bank department overseeing the monetary policy, told reporters on Tuesday.
YEREVAN, November 5. /ARKA/. Armenia's economy is expected to see 7.1% growth this year, Vahagn Grigoryan, head of a Central Bank department overseeing the monetary policy, told reporters on Tuesday.
He said the uncertainty in the international economy, propelled by the so-called 'trade wars' has increased, affecting eventually the growth of the world economy which is showing downward trends. He said the Central Bank expects the third quarter growth to be 6.3%, driven largely by industry and services, which are forecast to grow by 9.2% and 9.6%, respectively.
He also pointed out a small, positive dynamics in the construction sector, which grew by 2.8%, while the downward trend in the agricultural sector persists. It fell by 3.8%.
"We believe that the growth pace will continue and the yearend growth will reach 7.1%. The growth dynamics in industry and services will continue, and positive changes will appear also in the construction and agriculture sectors, which we expect to up by 3.2% and 3 % respectively.' he said.
According to him, the growth is driven mainly by private consumption, whose share in GDP grows at an active pace of 11-14%. He said another positive factors is the growth in exports. According to him, it is expected that the budget impact in the third and fourth quarters will have a stimulating effect on the economy.
In its October “Global Economic Prospects: Heightened Tensions, Subdued Investment” report, the World Bank forecasted for Armenia 5.5% GDP growth for 2019 and 5.1% for 2020.
The IMF has also improved its macroeconomic forecast for Armenia in its October report on “Global Manufacturing Downturn, Rising Trade Barriers” to 6% in 2019 and 4.8% in 2020. The growth in Armenian government 2019 budget is projected at 4.9%. The inflation is projected at 2.7%. --0—
He said the uncertainty in the international economy, propelled by the so-called 'trade wars' has increased, affecting eventually the growth of the world economy which is showing downward trends. He said the Central Bank expects the third quarter growth to be 6.3%, driven largely by industry and services, which are forecast to grow by 9.2% and 9.6%, respectively.
He also pointed out a small, positive dynamics in the construction sector, which grew by 2.8%, while the downward trend in the agricultural sector persists. It fell by 3.8%.
"We believe that the growth pace will continue and the yearend growth will reach 7.1%. The growth dynamics in industry and services will continue, and positive changes will appear also in the construction and agriculture sectors, which we expect to up by 3.2% and 3 % respectively.' he said.
According to him, the growth is driven mainly by private consumption, whose share in GDP grows at an active pace of 11-14%. He said another positive factors is the growth in exports. According to him, it is expected that the budget impact in the third and fourth quarters will have a stimulating effect on the economy.
In its October “Global Economic Prospects: Heightened Tensions, Subdued Investment” report, the World Bank forecasted for Armenia 5.5% GDP growth for 2019 and 5.1% for 2020.
The IMF has also improved its macroeconomic forecast for Armenia in its October report on “Global Manufacturing Downturn, Rising Trade Barriers” to 6% in 2019 and 4.8% in 2020. The growth in Armenian government 2019 budget is projected at 4.9%. The inflation is projected at 2.7%. --0—
