Economic growth rate in Armenia accelerating in second half of the year, central bank chairman says
28.10.2014,
18:23
Economic growth rate in Armenia is usually accelerating in the second half of the year, Central Bank of Armenia chairman Arthur Javadyan told a parliamentary hearing today on next year’s budget.
YEREVAN, October 28 / ARKA /. Economic growth rate in Armenia is usually accelerating in the second half of the year, Central Bank of Armenia chairman Arthur Javadyan told a parliamentary hearing today on next year’s budget.
According to him, the slowdown in global economic growth, the slashing investments in the Armenian economy and industrial output decline because of higher energy prices in the first half of 2014 resulted in a slowdown in Armenian economic growth.
Javadyan said the growth rate is expected to accelerate in the second half prompted by agricultural sector and recovering industry.
At the same time, he noted that a rise in civil servants salary effective form July 1 and high rate of tourism industry development are a serious stimulus to increase the demand.
In late September the International Monetary Fund (IMF) revised downward its economic growth forecast for Armenia by one percentage point lower from its earlier prediction of 3.5 percent, explaining it by Western economic sanctions against Russia. According to IMF, the sanctions imposed by the United States and the European Union against Russia are reflecting negatively on Armenian exports to Russia and remittances from hundreds of thousands of Armenian labor migrants working in Russia.
Another reason of the slower economic growth, according to IMF is the Armenian government’s failure so far to fully meet its 2014 spending targets.
In August the Central Bank of Armenia also revised downward the economic growth forecast for 2014 to 3.6%-4.2% from the previous forecast of 4.1%-4.8%. -0-
