YEREVAN, November 28 / ARKA /. Armenia’s Central Bank has revised downward its forecast of economic growth for 2018 to 4.6%-5.1% from its previous projection of 5.6%-6.9%.
The regulator said in a report on its monetary policy that high rates of economic activity, recorded in the first half of 2018, began to decline from the third quarter. It said also that the private spending is still on the rise, caused by ‘unprecedented growth in working capital reserves.”
The report of the Central Bank said that the projected economic growth for 2018 is backed by the investments, lending growth, as well as by a large number of tourists visiting Armenia.
In the medium term, economic growth will be driven by economic activity and ongoing reforms. The Central Bank said also it expects the economy to expand by 4.4%-5.5% in 2019 and by 3.9%-5.4% in 2020.
“Medium-term economic growth will be driven largely by the expansion of production capacity, the structural reforms undertaken by the government, as well as by economic growth in the partner countries,” the report said. The government’s GDP projection for 2018 is 4.5%. -0-
