ArmInfo. Fitch Ratings International Rating Agency confirmed the long term ratings due to foreign and national currency based liabilities of Armenia at the l;evel of B+ with a forecast as Sustainable., the updated rating list of Fitch Rating reads in respect to Armenia. According to the source, the long term rating of forex based unsecured priority bonds is also approved at B+ level. The rating of per-country ceiling is kept at BB+ mark. Armenia's ratings are supported particularly with the higher r capita income level and effective monetary policy , the Fitch Ratings information reads.
According to Fitch experts, the ratings are pressed with a heavy debt load, high budget deficit, essential USD trend and the tention with neighbor countries.
Fitch Rating experts assume that Armenia's GDP will speed up to 2,1 % in this year and to 3,1 % in 2018, which is preconditioned by the situation growing better in Russia and the raw prices feasible recovery expected.
To recall, the International Monetary Fund (IMF) has upgraded its forecast for Armenia's economic growth in 2016 to 3.2% from 2.25-2.5%, with acceleration to 3.4% in 2017. Besides, IMF in its report forecasts that prices in Armenia will decline by 0.5%. The World Bank in its November report has upgraded its forecast of Armenia's economic growth to 3.1% (vs previous 1.9%), and 3.3%-3.6% in 2017-2018. EBRD forecasts 2% economic growth in 2016.
The state budget of Armenia fixed 2.2% GDP growth in 2016, deflator index - 4%, 12- month inflation - 4% (+1.5%). According to the National Statistical Service of Armenia in Jan-Oct 2016, the economic activity growth in Armenia slackened to 0.4% from 3.5% in Jan-Oct 2015. Services and industry remained the driving force of economic activity: services grew by 7.7%, and industry - by 6.5% versus Jan-Oct 2015. Export in Jan-Oct 2016 grew by 19.8% y-o-y, while import dropped by 0.3% versus 2.2% and 26.6% decline respectively in previous year. According to the Central Bank, in 2015 the amount of individuals' transfers to Armenia dropped by 24% to $1.6 bln, while the transfers from Armenia declined by 16% to $0.8 bln. Russia had the biggest share in both the inflow and outflow - 63% and 37%, respectively.