Monday, October 6 2014 19:49
Private investments in Armenian economy to grow by 1.8% in 2014
ArmInfo. The Central Bank of Armenia expects low investment activity in 2014. Private investments are expected to grow by 1.8%.
Investment activity has been low so far this year due to decline in construction.
In 2015-2016 construction is expected to revive. So, private investments may register 5-6% growth. One more factor that is expected to boost private investing is growth in savings due to newly introduced accumulative pension scheme. Armenia's joining the Eurasian Economic Union may also encourage investment activity.
In Q3 2014 composite demand is expected to grow by 5%. In 2016 the growth rate will slow down.
The private consumption growth is expected to decelerate in 2014 - 4% (versus the previously forecast 4.6%). The reason is the lower than expected level of private transfers from Russia, economic activity and private spending. Nevertheless, at the yearend of 2014 the private spending growth rates in Armenia will considerably exceed the index of the previous year (0.9%).
In real terms, the private spending growth is forecast to accelerate - 4.5%. The salary rise in the state expected for Q3 2014, the stimulative monetary policy and the weak inflationary environment will lead to growth in revenues and paying capacity of the population. In 2016- 2017 the private spending growth will stabilize at 4%.
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