World Bank does not exclude revising of its forecast for Armenia if situation in Russia changes

"World Bank closely follows the developments in Russia and keeps in touch with those economists, who make corresponding forecasts and possibly if the situation changes we will revise our forecasts for Armenia. But as 2015 showed it is quite possible that even in the situation of economic problems in Russia, domestic revival of economy in Armenia is quite possible", she stated noting that for example in 2015 due to growth of agriculture in Armenia decline of indicators of other fields were neutralized. At the same time, Bailey noted that dropping oil prices will influence deepening of crisis in Russia.  

 

"Currently we continue assist Armenian government in various programs, in order to help the region have high indicator of productivity despite the situation in Russia", WB Country Manager for Armenia stated. 

 

To note, World Bank forecasts a 2.2% GDP growth for Armenia in 2016.  Compared to 2015 World Bank forecasts insignificant slowdown of economic growth from 2.5%. International Monetary Fund changed the forecast on Armenia's economy growth in 2015 from stagnation to 2.5% growth with further slowdown by 2.2% in 2016. EBRD improved the forecast on Armenia's GDP dynamics in 2015 from 1.5% decline to 2.3% growth with slowdown of growth to 2% in 2016. The Central Bank of Armenia has upgraded its economic growth forecast for Armenia from the previous 2.8- 3.6% to 3.2-3.9%, according to the CBA's monetary policy program for Q4 2015.  In 2016, the economic growth will slow down to 1.6-2.7%.

 

According to the National Statistical Service of Armenia, in Jan-Nov 2015 as compared to the same period of 2014, economic growth in Armenia fell from 3.8% to 2.9% due to decline of trade, construction and significant slackening of growth rates in the field of services at the background of agriculture growth by 11.6% and industry by 4.6%.