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IMF PREDICTS 2.6 PERCENT GROWTH FOR ARMENIA THIS YEAR
YEREVAN, October 31st. / ARKA /. IMF Resident Representative in
Armenia Teresa Daban Sanchez said today that the country's economy
will grow this year by 2.6%.
Speaking at a news conference, she said the growth is being affected
primarily by external factors, in particular, by the slowdown in
Russia's economic growth, the lack of economic growth in EU countries,
which are major trading partners of Armenia and by a drop in the amount
of remittances sent by Armenian labor migrants working in the Russian
Federation, whose national currency has been weakening for months. As
for domestic factors affecting growth Ms. Sanchez said it is the
government's failure so far to fully meet its 2013 spending targets.
"The state budget had enough resources, but because of some technical
factors, not all the planned projects have been implemented and as
a result the budget deficit made 2.5% of GDP," said Ms. Sanchez.
She also said the difference between the IMF forecasts and the
government's projection of 3.3% growth is not essential, adding that
the IMF is more cautious in its forecasts.
She also said the next IMF mission will arrive in Armenia in
March, saying that by that time the IMF may be ready to revise its
macroeconomic forecasts.
In late September the 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.
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-
http://arka.am/en/news/economy/imf_predicts_2_6_percent_growth_for_armenia_this_y ear/#sthash.CHpVUYBD.dpuf
From: Baghdasarian
YEREVAN, October 31st. / ARKA /. IMF Resident Representative in
Armenia Teresa Daban Sanchez said today that the country's economy
will grow this year by 2.6%.
Speaking at a news conference, she said the growth is being affected
primarily by external factors, in particular, by the slowdown in
Russia's economic growth, the lack of economic growth in EU countries,
which are major trading partners of Armenia and by a drop in the amount
of remittances sent by Armenian labor migrants working in the Russian
Federation, whose national currency has been weakening for months. As
for domestic factors affecting growth Ms. Sanchez said it is the
government's failure so far to fully meet its 2013 spending targets.
"The state budget had enough resources, but because of some technical
factors, not all the planned projects have been implemented and as
a result the budget deficit made 2.5% of GDP," said Ms. Sanchez.
She also said the difference between the IMF forecasts and the
government's projection of 3.3% growth is not essential, adding that
the IMF is more cautious in its forecasts.
She also said the next IMF mission will arrive in Armenia in
March, saying that by that time the IMF may be ready to revise its
macroeconomic forecasts.
In late September the 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.
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-
http://arka.am/en/news/economy/imf_predicts_2_6_percent_growth_for_armenia_this_y ear/#sthash.CHpVUYBD.dpuf
From: Baghdasarian