UN forecasts 2.5 percent economic expansion for Armenia this year
02.05.2017,
15:29
The Armenian economy will grow by 2.5% in 2017, and by 3% in 2018, according to the UN Economic and Social Survey of Asia and the Pacific 2017.
YEREVAN, May 2. /ARKA/. The Armenian economy will grow by 2.5% in 2017, and by 3% in 2018, according to the UN Economic and Social Survey of Asia and the Pacific 2017. UN experts believe that the projected economic recovery in Russia will contribute to increased remittances to Armenia by Armenian labor migrants in Russia , which account for about 13% of Armenia's GDP.
"Consumer spending, especially low-income households, will also benefit from the expansion of the family allowance program. In addition, the construction of a railway link from Iran to Russia via Armenia and Georgia will contribute to economic activity," the UN report says.
On the other hand, the UN indicates that the fiscal support will be less strong in the coming years, since the ratio of public debt to GDP has exceeded the statutory limit of 50%, which requires stricter fiscal policy.
Meanwhile, after deflation in 2016, according to the UN forecasts, the total prices will increase by 1.5% in 2017 and by 3% in 2018.
Armenian government projection of 2017 economic expansion is 3.2%. The World Bank’s forecast is 2.7%, that of IMF is 2.9% and that of the Asian Development Bank is 2.2%. -0-
"Consumer spending, especially low-income households, will also benefit from the expansion of the family allowance program. In addition, the construction of a railway link from Iran to Russia via Armenia and Georgia will contribute to economic activity," the UN report says.
On the other hand, the UN indicates that the fiscal support will be less strong in the coming years, since the ratio of public debt to GDP has exceeded the statutory limit of 50%, which requires stricter fiscal policy.
Meanwhile, after deflation in 2016, according to the UN forecasts, the total prices will increase by 1.5% in 2017 and by 3% in 2018.
Armenian government projection of 2017 economic expansion is 3.2%. The World Bank’s forecast is 2.7%, that of IMF is 2.9% and that of the Asian Development Bank is 2.2%. -0-
