YEREVAN, May 26. / ARKA /. The Central Bank of Armenia said in a report that it has revised downwards its recent GDP growth projection to 4.1%-4.8 % from 5.4%-6.1 %.
The bank said the revision stems from worsening economic conditions in Russia, which is Armenia major trade and investment partner. Other factors that made the regulator to cut its forecast are the weaker than expected tax and fiscal policy, as well as the delayed commission of Teghut copper mine.
The Eurasian Development Bank has projected a 4.8% growth for Armenia. The IMF has also revised downwards its projection to 4.3 %; the World Bank’s forecast is 5%.
At the same time, the international rating agency Moody's said the GDP growth in Armenia in 2014 will be lower than in 2013 because of the Ukrainian crisis and Russia’s involvement in it.
The Central Bank of Armenia has also projected a 2.5”-5.5 % inflation for this year. The government’s projection of GDP is 5.2 percent. It also expects a 4 % (± 1.5%) inflation. -0-