YEREVAN, October 29. /ARKA/. Armenia’s output growth has accelerated, led by manufacturing and mining, according to EBRD’s latest report on regional quarterly economic prospects.
“The authorities are pursuing fiscal consolidation and structural reforms under an IMF-supported programme,” the report states.
EBRD experts say the economy continues to benefit from large remittance inflows and substantial official financing.
“Immediate risks are related to the uncertain external environment, in light of the country’s dependence on remittances and export concentration.”
According to the report, growth in the transition region is expected to drop from 4.6 per cent in 2011 to 2.7 per cent in 2012 before picking up modestly to 3.2 per cent in 2013.
Emerging Europe is likely to live through another challenging year before any real recovery can start, EBRD economists say.
The crisis in the Eurozone is continuing to negatively affect economic performance in the EBRD’s region of operations. However, thanks to the recent actions by the European Central Bank as well as announced European measures toward bank resolution and banking union the downside risks to growth have reduced somewhat.
The EBRD’s region of operations fared worse in the first half of 2012 compared to the second half of 2011, with central Europe, the Baltics and south-eastern Europe noticeably slower.
The global economic instability and the eurozone crisis have had an impact on all regions, the report shows.
Armenia is expected to see 4.2% economic growth in 2012. GDP growth is forecasted at 6% in 2012 state budget. EBRD projects economic growth in Armenia at 4-4.5%.—0-
