Central bank chairman predicts bigger than expected GDP drop in 2020

YEREVAN, June 25. /ARKA/. Armenia’s GDP will decline more by the end of 2020 than most of the forecasts predict, the chairman of the Central Bank Martin Galstyan stated at a parliamentary meeting on Thursday.

The head of the Central Bank said that in March 2020 the economic growth was projected at 0.7%, which was lower than the previous forecast of 5.3%.

He listed the areas that would be most affected by the pandemic – they are services and catering, transportation, travel agencies, and construction.

“The pandemic will practically not affect agriculture,” the head of the Central Bank said, emphasizing that there will also be a decline in private consumption and investment.

On April 29, the parliament of Armenia approved a revision of budget indicators to offset the consequences of the COVID-19. The originally projected GDP growth of 4.9% was reduced to 2% Also, the original GDP volume of 7.095 trillion drams was reduced to 6.485 trillion drams and the earlier projected deficit budget of 160.7 billion drams was raised to 324 billion drams. —0-

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