ADB: 4% economic growth expected in Armenia in 2018

YEREVAN, April 12. /ARKA/. The Asian Development Bank forecasts a moderate four-percent economic growth in 2018 to Armenia.
In its Asian Development Outlook 2018 “How Technology Affects Jobs”, the ADB says that GDP growth will stand at 4.2%.

https://www.adb.org/sites/default/files/publication/411666/ado2018.pdf

Inflation is predicted to remain below 3.0% and the current account deficit to widen further toward 3.0% of GDP in 2018 and in 2019 inflation is thought to be recorded at 2.2.

«Growth jumped to 7.5% in 2017, following near-zero growth in 2016, on stronger demand both at home and abroad. Inflation returned, at 1.0%, and the current account deficit widened slightly to equal 2.5% of GDP,» the ADB says.

In the Armenian government budget for 2018, GDP growth is projected at 4.5%.

The Armenian office of the ADB says that this forecast implies long-lasting favorable environment and acceleration of structural reforms aimed at administration improvement and promotion of private investments and export.

Continued fiscal consolidation is critical to reduce high public debt.

The monetary policy will be tightening in 2018 for resisting the growing inflation pressure.

According to the Asian Development Bank’s forecast for the Commonwealth of Independent States, Azerbaijan will have a 1.7% GDP growth in 2018, Georgia 4.5%, Kazakhstan 3.2%, Kyrgyzstan 3.5%, Tajikistan 6%. Turkmeniastan 6.5% and Uzbekistan 5.5%.

The ADB changed its outlooks for Asian developing countries upward – to 6% in 2018 and to 5.9% in 2019.

«Growth picked up across most of the economies in developing Asia, supported by continued high demand for exports and rapidly expanding domestic demand,» the ADB says in its report.

Risks to the outlook are tilted to the downside, driven primarily by fears of escalating trade tensions. Recent US tariffs on select products have not yet dented trade, but further actions by the US and counteractions against them could undermine business and consumer confidence in Asia and the Pacific.

Higher US interest rates could accelerate capital outflows, although this risk is mitigated to some degree by abundant liquidity throughout the region. Fortunately, most Asian economies are well positioned to meet these challenges. –0—

spot_img

POPULAR

Moody’s Upgrades Unibank’s Rating Outlook to Positive and Affirms B1 Long-Term Deposit Ratings

Moody’s Ratings has affirmed Unibank’s long-term deposit ratings at B1, as well as its b2 BCA and Adjusted BCA.

Head of the Union of Banks of Armenia did not rule out consolidation of the Armenian banking market

Daniel Azatyan, Chairman of the Union of Banks of Armenia, believes the current number of commercial banks in the country is optimal, but theoretically allows for market consolidation.

Armenia’s $5.9 billion reserves cover more than four months of imports: former Finance Minister calls this a hedge against external shocks

Armenia's $5.9 billion international reserves cover more than four months of imports and currently provide a fairly reliable hedge against external shocks.

Armenia to prepare action plan to implement MONEYVAL recommendations — Union of Banks

Armenia's interdepartmental commission will soon present for discussion an action plan to implement MONEYVAL recommendations, said Daniel Azatyan, Chairman of the Union of Banks of Armenia, in response to a question from ARKA news agency.

Central Bank: Armenia’s current public debt level is not a cause for concern

The current level of Armenia's public debt is not a cause for concern, stated Deputy Governor of the Central Bank of Armenia Hovhannes Khachatryan.

LATEST NEWS

spot_imgspot_imgspot_img