ArmInfo. International Monetary Fund (IMF) has published an outlook for Caucasus and Central Asia wherein it urges these countries to step up efforts to implement reforms in the financial sector and labor market.
According to the source, the economy of the countries in Caucasus and Central Asia is experiencing financial problems with the low prices of energy resources, economic decline in Russia, and geopolitical tensions around the conflict in Ukraine. IMF analysts say the slackening economic growth reflects the influence of the geopolitical tensions between Russia and Ukraine. In their words, the economic growth in Russia prompted the two countries' governments to implement large infrastructure project, the trust in the economies increased along with private investments. However, the period of low prices of energy resources sparked large-scale job cuts in the fields depending on the oil revenues. Eventually, during the coming five years, long-term outlook of growth in the region will fall by 1.25 percentage points every year comparing to the similar outlook for the developing markets.
At the same time, the IMF recommends the countries to implement reforms in the financial sector and labor market to neutralize that negative effect.
The given group of the countries surveyed by the IMF comprises Azerbaijan, Kazakhstan, Turkmenistan, Uzbekistan, Armenia, Georgia, Kyrgyzstan, and Tajikistan.
International Monetary Fund and World Bank forecasted a 2.2% GDP growth for Armenia in 2016. The state budget of Armenia for 2016 envisages 2.2% real GDP growth. According to the consensus-forecast by the Eurasian Development Bank, the GDP growth in Armenia will make up 2.2%. Fitch forecasts up to 2% GDP growth in Armenia.