Armenia’s second quarter GDP growth expected at 4% - central bank’s projection
YEREVAN, July 7. /ARKA/. Armenia's overall GDP growth by the end of the second quarter of 2014 is expected at 4% due to increased added value in agriculture and services, the press office of the central bank said.
Economic activity was within the projection in the first five months of this year, according to the report.
According to ArmStat, economic activity rose by 4% in January-May compared to the same period of 2013.
Private consumption growth was 4.3% in January-May and is within the projection as well, says the report. Private investments continue recovering more slowly than expected, and dropped by 2.2% in the period as compared to 0.1% expected.
Bearing in mind the impact of expansionary tax and budget policies over domestic demand, economic growth is expected to somehow speed up, says the report.
Exports rose by 3.2% and imports by 2% in the first five months of 2014 compared to the same period of the year before. Net inflow of private remittances through Armenia’s banking system rose by 4.1% in the reporting period.
The report also says 0.8% deflation was recorded in May 2014 leading to 3.6% twelve-month inflation as of the end of May.
Reduction in prices was recorded mainly due to a 1.4% decrease in prices for foodstuffs, particularly for vegetables and potatoes (12.5%) and eggs (4.8%). Service prices dropped by 0.2% and nonfood prices rose by 0.3% in May.
According to ArmStat, Armenia’s GDP growth was 3.1% in the first quarter of this year. Under the budget, expected economy growth was 5.2% and inflation 4% (±1.5%) in 2014. –0--