ArmInfo. Armenia will end 2020 with a 7.9% economic decline, while growth recovers in 2021 by 3.2%. The Minister of Finance of the Republic of Armenia Atom Janjughazyan stated this at an extraordinary meeting of the Standing Committee of the National Assembly of the Republic of Armenia on Financial-Credit and Budgetary Issues.
He recalled that it was previously predicted that 2020 will end with an economic decline of 6%, and growth in 2021 by 4.8%.
In this context, Janjughazyan noted that at first the forecast was revised downward by 0.8 pp. in connection with the outbreak of hostilities, and the subsequent deepening of the negative forecast is due, among other things, to the expected consequences of the second wave of coronavirus.
With regard to the ratio of tax revenues to GDP, the minister noted that, guided by the results registered in September, it is possible that at the end of 2020, these indicators may be slightly higher than expected. <If earlier it was predicted that tax revenues in 2020 will amount to 1.320 trillion. drams, then relying on the indicators for September, I believe that we will end the year with an indicator within 1.350 trillion. Drams - 1.356 trillion. drams>, - said Janjugazyan.
Due to this, as he continued, the budget deficit will also decrease by 30 billion drams, amounting to 430 billion. drams, instead of the previously predicted 459 billion drams. Recall that according to the latest forecast of the World Bank for 2020 (October, 2020), the GDP decline in Armenia will be 6.3%, against the previously expected 2.8% and actual 7.6% growth in 2019. In 2021, the WB expects Armenia's GDP to grow by 4.6%.
