WB expert: Armenia needs GDP 5% annual growth to reach positive social effect

ArmInfo. To reach positive social effect, Armenia needs GDP 5% annual growth, Gohar Gyulumyan, the senior economist of WB Yerevan office shared her opinion  during press conference held on December 8 in Yerevan.

According to the expert, the drop down tendency in Armenian economy, fixed within recent months, does not inspire an optimism in respect to the improvement of social level. "According to recent data, the poverty level in Armenia remained the same, decreasing during 2015 only for 0,2%. Meanwhile, to fix any serious achievement in respect to poverty decrease and social tasks solutions, the annual GDP growth in Armenia should form 5% and more.

According to the National Statistics Service data, the level of poverty in Armenia at 2015 formed 29,8%, which is 0,2 % less than in 2014. The total number of poor people in Armenia formed 900.000 (19,4%), 310.000 of which are very  poor (8,4%)  and the category of extremely poor people comprises 60.000 (2%) According to the updated forecast of the Central Bank of Armenia, included in the Central Bank Monetary Policy program for Q4, 2016, the level of unemployment in 2016 will form 18,1% ( versus previously forecasted 17,8%). According to CBA forecast, further in 2017 the unemployment  level will grow for 18,3%, while in the previous forecast the regulator expected the annual decrease of this indicator for 0,4%.  Meanwhile, according to earliest  WB  forecasts, the poverty level in Armenia should decrease rapidly from 25,6% in 2015 to 24,9%in 2016, with further decrease to 24,1-23,2 %.