Mon, 30 June
21.1 C
Yerevan
USD: 384.32 RUB: 4.89 EUR: 450.23 GEL: 141.11 GBP: 527.56

Fitch raises Armenia economic growth outlook for 2017 to 3.4%

YEREVAN, July 4. /ARKA/. Fitch has revised its growth projection up to 3.4% for 2017, with upside risks from stronger than expected public sector capital spending and faster export growth. Growth could accelerate further in 2018-19, but improving the country’s medium-term growth prospects is likely to require further progress in improving the investment climate, as total investment is low at 18.4% of GDP.

Armenia’s exports are growing strongly, which helped its current account deficit to remain roughly stable at 2.7% of GDP in 2016. A favourable international environment characterised by a recovery in commodity prices, improved export diversification and stabilisation of the Russian economy will benefit export and remittances receipts, leading the current account deficit to average 2.1% in 2017-2018, almost half the expected ‘B’ median. Lower current account deficits help mitigate external vulnerabilities given Armenia’s small size and commodity dependence, as well as helping to support stabilisation of the country’s high net external debt of 46.7% of GDP vs 20% for the rating category median.

The country is continuing to adjust following the external shock in 2014-15 from the drop in commodity prices and remittances from Russia. GDP growth has recovered strongly reaching 6.5% in 1Q17, after the sharp deceleration to 0.2% in 2016.

Fitch expects Armenia’s general government deficit to narrow to 3.3% of GDP in 2017 after ballooning to 5.5% of GDP in 2016, compared with an original target of 3.5%.

Fitch Ratings has affirmed Armenia’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) at ‘B+’ with Stable Outlook.

In the government budget for 2017, GDP growth is projected at 3.2%. The World Bank forecasts a 2.7 percent growth for Armenia in 2017, the International Monetary Fund predicts a 2.9% growth, the United Nations up to 2.5%, the European Bank for Reconstruction and Development 2.5% and the Asian Development Bank 2.2%. –0—

spot_img

POPULAR

Insurance market of Armenia is in embryonic state

Insurance market of Armenia is in embryonic state

Ameriabank’s MyInvest Platform Gains Direct Access to AMXTrader Trading System

Ameriabank has become the first bank in Armenia to provide its investment clients with direct access to the Armenia Stock Exchange (AMX) trading system, AMXTrader, through the MyInvest platform.

Average annual exchange rate of dram against USD is forecast at 392 drams in 2025 – EDB

The average annual exchange rate of the Armenian dram against the US dollar is forecast at 392 drams in 2025, according to the macroeconomic review of the Eurasian Development Bank for seven member countries for 2025–2027.

Euro falls by 0.62 points to 450.23 drams

The average market exchange rate of the US dollar against the Armenian dram as of June 27, 2025, decreased by 0.59 points compared to June 26 and amounted to 384.32 drams.

LATEST NEWS

spot_imgspot_imgspot_img