Economic growth in Armenia slows down

Unlike its neighboring countries, witnessing annual rise in the economic growth rates, Armenia faces reverse process – the country’s GDP growth is predicted at 1.9-2.6 percent by credible international institutions. Last year, the growth was registered at 3 percent.

Economic growth in Armenia in the second quarter of 2016 amounted to 1.5 percent, compared to reportedly 4.5 percent in the first three months of the current year.

The preliminary data of the National Statistical Service of Armenia shows that the volume of Armenia's GDP for second quarter of 2016 made up 1,128 billion drams ($2.3 billion).

Under the data, 1.5-percent economic growth in the second quarter was due to the growth in the industrial sector, including energy – 4.5 percent and trade and services – 0.9 percent. However, agriculture and fisheries faced a decline of 1.3 percent, and construction – 5.8 percent.

According to the NSS, economic growth in Armenia in 2015 made up 3 percent against the predicted 4.1 percent. The volume of Armenian GDP in 2015 was 5,047.4 billion drams ($10.56 billion).

Meanwhile, the Armenian authorities have an unexplained optimistic outlook and expect a GDP growth of 4 percent by the end of this year.

The latest forecasts of the World Bank and IMF predict economic growth of 1.9 percent in 2016, European Bank for Reconstruction and Development (EBRD) forecasts 2 percent, Eurasian Development Bank (EDB) – 2,6 percent, Fitch – up to 2 percent, and Moody’s expects a 2.2-percent slowdown in the growth of Armenian GDP.