YEREVAN, October 28. /ARKA/. Armenia’s economic growth is slowing down in 2013 influenced by both internal and external factors, the country’s prime-minister Tigran Sargsyan said in presenting the 2014 government budget in the parliament.
Processes taking place in the main partner countries had substantial impact over the economic situation in Armenia, and the World Bank and the IMF have reduced their global outlooks for macroeconomic indicators, the prime-minister said.
In its October World Economic Outlook report the IMF says Armenia may post a 4.6% GDP growth in 2013. As per the WB forecasts, CIS economy growth will reach 2.4%, despite slowing-down growth rates (down to 1.8%) in Russia (down to 1.8%).
Among internal factors the premier mentioned the slow process of business environment improvement, as well as reduced ration of private investments to GDP over the last 5 years.
“We are the 48th in the Doing Business ranking, but I believe we could be in the top twenty list”, Sargsyan said.
The prime-minister also expressed concerns over the decline recorded in construction sector over the last five years.
“These factors have had negative impact over the economic growth indicators. Yet, industry growth rates are high – 10%, agriculture is also expected to grow this year”, Sargsyan said.
According to the premier, raising the refinancing rate by 0.5 pp had a scotching effect on economic environment.
At its August 13 meeting the Council of the Central Bank of Armenia made a decision to raise the refinancing rate by 0.5 percentage points to 8.5%. The previous review of September 6 2011 brought the rate from 8.5% down to 8%.
Armenia’s economic activity indicator, according to most recent statistics, rose by 3.2% in January-September compared to the same period of the year before.
Under the government budget a 6.2% GDP growth has been planned for 2013. –0—