Sun, 27 July
35.1 C
Yerevan
USD: 383.94 RUB: 4.85 EUR: 450.25 GEL: 141.78 GBP: 516.63

The 2020 budget deficit to grow to 7.1% from earlier projected 2.3%

YEREVAN, November 17. /ARKA/. The 2020 budget deficit will grow to 7.1% instead of the 2.3% projected at the beginning of the year, Chairman of the Central Bank of Armenia Martin Galstyan said in parliament on Tuesday.

He said the economic development in 2020 was driven by the coronavirus crisis, economic constraints and  the growing uncertainty due to the  martial law.

According to him, both supply and demand contributed to the deep economic downturn, resulting in a decrease in private spending.

“However, the expansionary policy was expressed in an increase in the deficit and public debt. At the beginning of the year, the budget deficit was expected at 2.3%, due to the coronavirus it was revised and, according to September data, was expected at 6.1%, but according to the current forecast for the year we expect it at 7.1%, which is due to both an increase in government spending in the context of war in Karabakh  and a decrease in tax revenues as a result of a slowdown in economic activity,” Galstyan said.

As for macroeconomic estimates, he said the GDP growth  for 2021 is projected at 3.2%, which from the point of view of supply will be expressed by growth in all spheres of the economy.

“It is expected that gross demand compared to 2020 will show recovery trends, due to the growth of both domestic consuming and investment spending,” Galstyan said.

The draft state budget for 2021 calls for 1 trillion 569.06 billion drams in revenue and 1 trillion 843.1 billion drams in spending. The projected budget deficit is f 274 billion drams (4.1% of GDP). Economic growth is foreseen at 4.8%, and inflation is set at 4% (± 1.5%). ($1 – 497.14 drams). –0–

spot_img

POPULAR

Fitch expects inflation in Armenia to remain within the target level until 2027

International rating agency Fitch expects inflation in Armenia to remain within the target level until 2027, although soft fiscal policy and the projected moderate weakening of the dram create certain risks.

Fitch forecasts Armenia to tighten fiscal policy after 2027

Fitch Ratings analysts forecast a tightening of fiscal policy by the republic's authorities in a new report on Armenia.

A scheme for stealing funds through fake investment platforms  exposed in Yerevan

A criminal group operating in one of the capital's business centers and stealing citizens' money through Internet calls has been exposed in Armenia, the Investigative Committee of Armenia reports.

Armenia and EIB sign financial agreement for Resilient Syunik Program worth €50 million

A financial agreement for the Armenia-Sustainable Syunik Program has been signed in Luxembourg by Armenian Minister of Finance Vahe Hovhannisyan and Vice President of the European Investment Bank (EIB) Teresa Czerwińska.

Armenia’s economy to stabilize on 5.5% growth trajectory in 2025 – EDB forecast

According to EDB forecasts, Armenia's economy will stabilize on a 5.5% growth trajectory with domestic demand remaining the main driver of development.

LATEST NEWS

spot_imgspot_imgspot_img