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REVISION DOWNWARDS: IMF FURTHER LOWERS ARMENIAN GROWTH FORECAST
http://armenianow.com/economy/57248/armenia_imf_forecast_economy
ECONOMY | 01.10.14 | 10:21
Photolure
By SARA KHOJOYAN
ArmeniaNow reporter
Citing challenges facing the country's economy, the International
Monetary Fund (IMF) has lowered Armenia's GDP growth forecast from
4.3 to 2.6 percent.
Mark Horton, the head of the IMF Armenia mission, said on Tuesday:
"Armenia is facing a challenging period ahead with the developments in
the region and with the uncertainties around the sanctions [against
Russia]." He said the Armenian government should seek to offset the
unfavorable external factors with major structural reforms implemented
"as decisively as possible."
Remarkably, earlier, the world's leading think tank, Moody's Investor
Service, also lowered Armenia's growth prediction for this year down
to 2.1 percent, conditioning it by the Western sanctions against
Russia that it said would also affect the Armenian economy.
The Armenian government has also admitted the slowdown in economic
growth, but its figures are far higher than those presented by
international financial institutions. The country's Central Bank,
for example, at the beginning of the year forecast Armenia's annual
economic expansion at the level of 5.2 percent, but later lowered
it to 3.9 percent, the government of Hovik Abrahamyan lowered it to
4 percent.
The IMF representative said that the Armenian government continues to
under-fulfill the state budget spending, which particularly affects
large projects and has its impact on economic growth.
According to Horton, uncertain terms of Armenia's membership in the
Eurasian Economic Union create general uncertainty which also has an
adverse effect on the private sector in Armenia.
The head of the IMF mission said membership in the Russian-led bloc has
more negative risks than positive expectations for Armenia, which is
again due to the crisis in Ukraine and the sanctions against Russia,
which, though, may prove not to be long-term ones.
"Annually, Armenia may have an additional $150-200 million in customs
revenues, which is quite a lot of money that the government should
think about spending," he said.
Armenia is expected to sign a Eurasian Economic Union accession treaty
on October 10.
http://armenianow.com/economy/57248/armenia_imf_forecast_economy
ECONOMY | 01.10.14 | 10:21
Photolure
By SARA KHOJOYAN
ArmeniaNow reporter
Citing challenges facing the country's economy, the International
Monetary Fund (IMF) has lowered Armenia's GDP growth forecast from
4.3 to 2.6 percent.
Mark Horton, the head of the IMF Armenia mission, said on Tuesday:
"Armenia is facing a challenging period ahead with the developments in
the region and with the uncertainties around the sanctions [against
Russia]." He said the Armenian government should seek to offset the
unfavorable external factors with major structural reforms implemented
"as decisively as possible."
Remarkably, earlier, the world's leading think tank, Moody's Investor
Service, also lowered Armenia's growth prediction for this year down
to 2.1 percent, conditioning it by the Western sanctions against
Russia that it said would also affect the Armenian economy.
The Armenian government has also admitted the slowdown in economic
growth, but its figures are far higher than those presented by
international financial institutions. The country's Central Bank,
for example, at the beginning of the year forecast Armenia's annual
economic expansion at the level of 5.2 percent, but later lowered
it to 3.9 percent, the government of Hovik Abrahamyan lowered it to
4 percent.
The IMF representative said that the Armenian government continues to
under-fulfill the state budget spending, which particularly affects
large projects and has its impact on economic growth.
According to Horton, uncertain terms of Armenia's membership in the
Eurasian Economic Union create general uncertainty which also has an
adverse effect on the private sector in Armenia.
The head of the IMF mission said membership in the Russian-led bloc has
more negative risks than positive expectations for Armenia, which is
again due to the crisis in Ukraine and the sanctions against Russia,
which, though, may prove not to be long-term ones.
"Annually, Armenia may have an additional $150-200 million in customs
revenues, which is quite a lot of money that the government should
think about spending," he said.
Armenia is expected to sign a Eurasian Economic Union accession treaty
on October 10.