WB downgrades 2015 Armenia economy growth forecast

YEREVAN, January 14. /ARKA/. The World Bank is currently projecting a 3.3% economic growth for Armenia for 2015 as compared to 5% before, according to WB’s Global Economic Prospects report released this January.

The report says Armenia’s GDP growth is expected to reach 3.7% in 2016 and 4.1% in 2017. The 2014 economic growth is 2.6% in Armenia for 2014, according to the report.

According to the projections, Armenia’s current account balance deficit will be minus 9.2% in relation to GDP in 2014, as compared to minus 8% in 2013. This indicator is projected at minus 7.2% for 2015, minus 7% for 2016 and minus 6.7% for 2017.

The report suggests the 2015 GDP growth will be 10% in Turkmenistan, 7.4% in Uzbekistan, 2% in Kyrgyzstan, 4.2% in Tajikistan, 4.4% in Azerbaijan, 1.8% in Kazakhstan, 3% in Moldova and 1.8% in Belarus. Russia and Ukraine are expected to see declines of 2.9% and 2.3% respectively. The 2015 GDP growth projection for Georgia is 5%.

The authors say economic growth rates dropped sharply in CIS counties in 2014, down to 1.5%, mainly due to drastic reduction in Ukraine’s production output. The decline in the Russian economy had a negative impact on trade and remittances. Sharp reduction in remittances has had major impact on Tajikistan and Kyrgyzstan in particular, as transfers from Russia account for 46% and 29% of GDP there respectively.

Sharp or stable reduction in prices for raw commodities or remittances from Russia is a major risk factor for CIS countries, according to the report.

The authors expect a 2.6% growth in global economy 2014, 3% in 2015, 3.3% in 2016 and 3.2% in 2017. –0–

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