Re: Armenia's Economic Pulse
Armenia’s economy growth may reach 3.3% in 2015 - IMF
YEREVAN, December 5. /ARKA/. Armenia’s economic growth may reach 3.3% in 2015if the respective policies are implemented by the government, IMF’s resident representative to Armenia Teresa Daban Sanchez said.
Global market developments will affect Armenia, Sanchez told a press conference on Wednesday.
IMF’s initial projection for Armenia was 2.6% economy growth for 2014, but the country’s potential is much higher, she said.
Focusing on the next year would be a more pragmatic approach for Armenia, Sanchez said. She also noted Armenia’s economic growth is influenced also by the Russia market situation.
IMF projects a 0.5% GDP growth in 2015 for Russia that has one of the biggest economies in the region. But this projection may be revised downward, she said adding the Russian authorities are considering even a possibility of a 0.8% decline.
In this respect, there are two important factors influencing the Armenian economy – private transfers from Russia and exports, Sanchez said.
“A quite complicated situation is expected next year as the Russian economy is not in a very good condition and this may affect remittances and exports”, the IMF resident representative said.
Transfers continue increasing by lower rates than before, and certain reduction in exports is seen amid dropping global demand, she said.
According to the Central Bank of Armenia, private remittances to Armenia through the country’s banking system amounted to over $161.6 million in October, a reduction of 17.1% compared to October 2013.
Transfers from Russia only were about $137.5 million in October, a decrease of 19% compared to October 2013 and a 6% reduction against the month before.
Official statistics say Armenia’s exports were $1,250 million in January-October (2.9% increase) and imports were about $3,626.5 million (3.8% increase). Hence, negative trade balance was $2,376.58 million.
Sanchez pointed out that if local demand is low, then it is time now for offering more stimulus for the economy through budget expenditure items, including capital expenditures.
Sanchez stressed the importance of infrastructure reforms and said IMF is focused on several sectors, including tax administering, favorable business environment, reforms aiming at better financial accessibility and energy reforms.
Armenia’s economy growth is 5.2% in 2014 budget and the budgeted real GDP growth level is 4.1% for 2015. –0--
15:20 05.12.2014
Armenia’s economy growth may reach 3.3% in 2015 - IMF
YEREVAN, December 5. /ARKA/. Armenia’s economic growth may reach 3.3% in 2015if the respective policies are implemented by the government, IMF’s resident representative to Armenia Teresa Daban Sanchez said.
Global market developments will affect Armenia, Sanchez told a press conference on Wednesday.
IMF’s initial projection for Armenia was 2.6% economy growth for 2014, but the country’s potential is much higher, she said.
Focusing on the next year would be a more pragmatic approach for Armenia, Sanchez said. She also noted Armenia’s economic growth is influenced also by the Russia market situation.
IMF projects a 0.5% GDP growth in 2015 for Russia that has one of the biggest economies in the region. But this projection may be revised downward, she said adding the Russian authorities are considering even a possibility of a 0.8% decline.
In this respect, there are two important factors influencing the Armenian economy – private transfers from Russia and exports, Sanchez said.
“A quite complicated situation is expected next year as the Russian economy is not in a very good condition and this may affect remittances and exports”, the IMF resident representative said.
Transfers continue increasing by lower rates than before, and certain reduction in exports is seen amid dropping global demand, she said.
According to the Central Bank of Armenia, private remittances to Armenia through the country’s banking system amounted to over $161.6 million in October, a reduction of 17.1% compared to October 2013.
Transfers from Russia only were about $137.5 million in October, a decrease of 19% compared to October 2013 and a 6% reduction against the month before.
Official statistics say Armenia’s exports were $1,250 million in January-October (2.9% increase) and imports were about $3,626.5 million (3.8% increase). Hence, negative trade balance was $2,376.58 million.
Sanchez pointed out that if local demand is low, then it is time now for offering more stimulus for the economy through budget expenditure items, including capital expenditures.
Sanchez stressed the importance of infrastructure reforms and said IMF is focused on several sectors, including tax administering, favorable business environment, reforms aiming at better financial accessibility and energy reforms.
Armenia’s economy growth is 5.2% in 2014 budget and the budgeted real GDP growth level is 4.1% for 2015. –0--
15:20 05.12.2014
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