Tweet
HIGHER ARMENIAN PRICES OF GAS AND ELECTRICITY MAY HAVE A REVERSE EFFECT ON EBRD'S FORECAST ABOUT ARMENIA'S GDP GROWTH
YEREVAN, July 19. / ARKA /. Higher prices of gas and electricity,
which came into force in Armenia on July 7, could have a reverse effect
on EBRD's forecast about Armenia's GDP growth, EBRD chief economist,
Alexander Pivovarsky, told a news conference in Yerevan today.
"According to the latest EBRD forecast, Armenia's GDP was to grow 5%
this year. However, we did not consider the higher prices of gas and
electricity, which became a surprise to us. And this can have the
opposite effect on our forecasts," he said.
According to Mr. Pivovarsky, the latest months have not been very
favorable for EBRD's partner countries; in particular, the euro
zone is still in recession, Russia, as well as Turkey and Poland
are experiencing strong slowdown in economic growth. "Against this
background a 4-5% growth for Armenia is a very favorable indicator,"
he said.
In turn, EBRD president Suma Chakrabarti said in the first quarter
Armenia had very good economic performance, but in the second quarter,
the higher prices of gas and electricity came as a big blow to it.
"It has caused damage to both producers and consumers. It is difficult
to say whether this effect will continue until the end of the year,
or smooth out the situation through investments," he added.
Chakrabarti said that the next EBRD forecast will be released in
October of this year.
"Ambitions are good, increasing GDP growth rate is an extremely
positive trend that should continue. In 2012, Armenia recorded a 7.2
percent GDP growth. These is the pace that Armenia should considere
as a medium term target. However, given the global economic situation,
any increase above 2.3% is worthy of respect " heconcluded.
Armenia's economic activity index in January-June increased by 4.4%
compared to the same period in 2012. The government's inflation
projection for this year is t 4% (± 1.5%), while GDP growth projection
is 6.2%. -0-
- See more at:
http://arka.am/en/news/economy/higher_armenian_prices_of_gas_and_electricity_may_ have_a_reverse_effect_on_ebrd_s_forecast_about_arm/#sthash.e7PvOuWJ.dpuf
YEREVAN, July 19. / ARKA /. Higher prices of gas and electricity,
which came into force in Armenia on July 7, could have a reverse effect
on EBRD's forecast about Armenia's GDP growth, EBRD chief economist,
Alexander Pivovarsky, told a news conference in Yerevan today.
"According to the latest EBRD forecast, Armenia's GDP was to grow 5%
this year. However, we did not consider the higher prices of gas and
electricity, which became a surprise to us. And this can have the
opposite effect on our forecasts," he said.
According to Mr. Pivovarsky, the latest months have not been very
favorable for EBRD's partner countries; in particular, the euro
zone is still in recession, Russia, as well as Turkey and Poland
are experiencing strong slowdown in economic growth. "Against this
background a 4-5% growth for Armenia is a very favorable indicator,"
he said.
In turn, EBRD president Suma Chakrabarti said in the first quarter
Armenia had very good economic performance, but in the second quarter,
the higher prices of gas and electricity came as a big blow to it.
"It has caused damage to both producers and consumers. It is difficult
to say whether this effect will continue until the end of the year,
or smooth out the situation through investments," he added.
Chakrabarti said that the next EBRD forecast will be released in
October of this year.
"Ambitions are good, increasing GDP growth rate is an extremely
positive trend that should continue. In 2012, Armenia recorded a 7.2
percent GDP growth. These is the pace that Armenia should considere
as a medium term target. However, given the global economic situation,
any increase above 2.3% is worthy of respect " heconcluded.
Armenia's economic activity index in January-June increased by 4.4%
compared to the same period in 2012. The government's inflation
projection for this year is t 4% (± 1.5%), while GDP growth projection
is 6.2%. -0-
- See more at:
http://arka.am/en/news/economy/higher_armenian_prices_of_gas_and_electricity_may_ have_a_reverse_effect_on_ebrd_s_forecast_about_arm/#sthash.e7PvOuWJ.dpuf