ArmInfo.

ArmInfo.Armenia's GDP slowed down y-o-y growth in the first quarter of 2020 from 7.1% to 3.8%, amounting to 1.3 trillion AMD ($ 2.6 billion). The GDP deflator index  in the first quarter of 2020 decreased to 98% from 103.8% in the first quarter of 2019. This is evidenced by the data of the Statistical Committee of the Republic of Armenia.

ArmInfo. Risks in the banking system of Armenia today associated with the uncertainty of the situation with the coronavirus pandemic are manageable even in the worst-case development scenario. This opinion was held May 26 during  an online press conference, answering a question from ArmInfo,  expressed by Executive Director of the Union of Banks of Armenia  (UBA) Seyran Sargsyan.

ArmInfo.Economic activity in Armenia, in January-April 2020 has decreased by 1.7% per annum (against 7% growth a year earlier), against the backdrop of a decline  in exports and imports by 8.1% and 11.5%, respectively. According to  preliminary data of the RA Statistical Committee, in the industry  breakdown, the industrial sector, the services sector and the energy  sector showed growth, the sectors of trade and construction were in  decline, and data on the agricultural sector are published in the  statistical report only quarterly.

ArmInfo.IDBank will help to increase energy efficiency and expand the use of alternative energy.

ArmInfo.S&P predicts a 2% drop in GDP in Armenia in 2020, against an actual growth of 7.6% in 2019. And in 2021, according to S&P expectations, Armenia's GDP will grow by 4.9%. 

ArmInfo. In 2020, about 500 km  of au roads will be repaired in Armenia. Of this amount, the  government at a meeting on May 14 approved a program for the  modernization of 185.3 km of roads.

ArmInfo.In Armenia, economic activity in the first quarter of 2020 compared to the first quarter of 2019 slowed to 4%. According to the final data of the Statistical Committee of the Republic of Armenia, the energy complex - 14.8% and the industrial sector - 8.7%, and to a lesser extent the services sector - 5.7% and the trade sector - 0.2%, acted as growth drivers, and the agricultural sector out of the decline by 4 , 5% growth, and this time the construction sector turned in the direction of recession - 9.4%. Compared to last year's pace, growth accelerated in the industrial sector, growth slowed down in the services and trade sectors, exit from recession to growth in the agricultural sector and energy sector, and a turn from growth to decline in the construction sector. A year earlier, in January-March 2019, compared to January-March 2018, economic activity slowed down from 10.6% to 6.5%, amid a decline in exports by 8.6% and imports by 3.1%. Growth was then recorded to a greater extent in the services sector - by 17.3%, the construction sector - by 10.8%, the trade sector - by 10.1%, amid the modest growth of the industrial sector by 2%, and the decline in the agricultural sector and energy sector by 0.2% and 14% respectively. Meanwhile, in March 2020, compared with February (on a monthly basis), economic activity was in stagnation (against a 14.8% growth in March 2019). Moreover, in addition to the construction sector, which showed an increase of 14%, all other industries have declined:  the energy sector - 15.4%, the services sector - 5.3%, the trade sector - 3.5% and the industrial sector - 2%, and in the agricultural sector statistics for the month are not indicated. A year earlier, in March 2019 compared with February, all sectors showed growth: the construction sector - 61.1%, the industrial sector - 16.1%, the services sector - 10.8%, the energy sector - 9.3%, the trade sector - 6, 7%, and for the agricultural sector, data for the month are not available.     In the annual context (March 2020 to March 2019), economic activity unfolded from a 6.2% increase to a 4.7% decline. This is due to the deterioration of dynamics in all sectors, and a particularly impressive decline was recorded in the construction sector - by 26.2%, followed by a downward trend: trade - 9.9%, services - 4.3%, industrial sector - 1, 9%, the energy sector - 1%, and data on the agricultural sector are not given in the statistical report. A year earlier, in March 2019 to March 2018, these industries were growing with a tendency to slow down:  the service sector - from 18.8% to 16.9%, the retail sector - from 6.3% to 5.3%, the industrial sector - from 8.2% to 2.2%, the energy complex - from 6.9% to 3.4%, the construction sector - from 23.2% to 0.5%. According to the statistics in the first quarter of 2020, the trading sector holds the leadership in absolute terms with the volume of 657.5 billion drams ($ 1.4 billion). The second place in terms of services is 452.4 billion drams ($ 937.9 million), the third is the industrial sector - 450.4 billion ($ 933.8 million), the fourth is the agricultural sector - 73.6 billion drams ($ 152.6 million), and the fifth is the construction sector - 43.9 billion drams ($ 91 million). The volume of electricity generation in January-March 2020 amounted to 2083.3 million kWh, of which only in March - 622 million kWh. The industrial production price index decreased in January-March 2020 compared to the same period last year by 0.1%, only in March it decreased by 0.4%, and compared with March 2019 it decreased by 1.7%, while As a year earlier, the dynamics was as follows: in January-March 2019 - an increase of 0.3% y / y, in March - an increase of 0.7%, compared with March 2018 - an increase of 3%. At the same time, the foreign trade turnover of Armenia in the I quarter of 2020 amounted to 753.9 billion drams ($ 1565.1 million) with an annual decline of 4%. In its structure, the volume of exports underwent annual growth of 0.2% to 262.4 billion drams ($ 544.9 million), while imports - a decline of 6.2% to 491.5 billion drams ($ 1020.2 million). In March 2020 alone, foreign trade turnover decreased by 7.9% due to a decline in exports by 13.3% and imports by 4.9%. In March 2020 to March 2019, the decline in exports by 17.4% and imports by 15.3%, reduced foreign trade by 16%. A year earlier, in January-March 2019, foreign trade turnover experienced an annual decline of 5% due to a decline in imports by 3.1% and exports by 8.6%; in March 2019, imports grew by 8.8% and exports by 7.5% ensured an increase in foreign trade turnover by 8.4%, compared with March 2018, a decrease in foreign trade turnover by 0.4% was triggered by a decline in exports by 2.5% with an increase in imports by 0.8%.  The average settlement rate of dram in March 2020 was 489.01 dr / $ 1, and in January-March - 482.32 dr / $ 1, against 487.48 dr / $ 1 in March 2019 and 487.23 dr / $ 1- in January-March 2019 It should be noted that the RA government forecasts a 2% drop in GDP for 2020.  According to WB forecasts, Armenia's GDP growth in 2020 will amount to 1.7% (according to the baseline scenario), but the likelihood of a recession is not excluded. In terms of Armenia's foreign trade, the WB forecasts for 2020 a decline in exports and imports by 1.5% and 2.6%, respectively. The IMF predicts a 1.5% drop in GDP in Armenia for 2020. The CBA forecast foreshadows a slowdown in GDP growth in 2020 to a stagnant 0.7% (from the actual 7.6% growth in 2019). Recall that in Armenia, as part of measures to prevent the spread of the coronavirus pandemic, a state of emergency was introduced from March 16, which will last until May 14 inclusive. In this regard, some activities in the first month of emergency were imposed a temporary ban, which was partially lifted in the second half of April.   

ArmInfo. World Bank (WB) forecasts for Armenia's GDP for 2020 look better than those for its neighboring countries and EAEU. According to the WB economic report "Combating COVID-19. Economic Perspective in the Europe and Central Asia Region"  (Fighting Covid- 19. ECA Economic update), in 2020 in Armenia GDP  growth will reach 1.7% (according to the baseline scenario) , while  in Georgia GDP is expected to grow by 0.1%, in Turkey - GDP growth by  0.5%, and in Azerbaijan GDP is projected to decline by 0.2%.

ArmInfo.The World Bank continues to be one of Armenia's key partners.  RA Deputy Prime Minister Mher Grigoryan stated yesterday during a video - conference  with the newly appointed WB Vice President for Europe and Central  Asia Anna Bjerde.

ArmInfo.In Armenia, economic activity in January-March 2020 compared to January-March 2019 slowed to 4%.

ArmInfo.IFC, a member of the World Bank Group, is investing €18.5 million in the European Fund for Southeast Europe SA, SICAV-SIF (EFSE). The facility will be used for on-lending to micro, small, and medium enterprises (MSMEs) through banks and microfinance institutions in fourteen European and Central Asian (ECA) countries. EFSE is the largest regional debt facility financing MSMEs in the region.

ArmInfo.The Armenian parliament at the meeting on April 17 in the second and final reading amended the law "On Energy".

ArmInfo. According to the new World Bank forecast, the GDP growth of Armenia in 2020 will be 1.7% (according to the baseline scenario), with acceleration in 2021 to  4.5% and in 2022 to 4.7%. This is stated in the WB economic report  "Fighting Covid-19. ECA Economic update''.  

ArmInfo.According to the forecast of the Asian Development Bank (ADB), inflation in Armenia in 2020 will be 2.8% (versus 1.4% in 2019), and in 2021 - 2.2%. This  forecast was published on April 3 in the ADB economic report, Asian  Development Outlook 2020.

ArmInfo. <In response to the rapid spread of the COVID-19 pandemic globally, and recently in Armenia, the World Bank is supporting the Government's response to  protect its people amid the coronavirus outbreak>, the official  website of WB in Armenia reports.

ArmInfo. According to the forecast of the Central Bank of Armenia for 2020, the ratio of the state budget deficit to GDP will be 3% (against the actual 1% in 2019 with  a y-o-y decline of 0.9 percentage points), and if the announced  volume of the anti-crisis assistance package does not change and will  be fully implemented during the current year, this ratio can reach  5.3%.

ArmInfo.According to the forecasts of the Central Bank of Armenia, inflation by the end of 2020 will amount to 1.9% and will head for the target threshold in  the medium term.  This was noted in the Monetary Policy Program of  the CBA for the I quarter of 2020, published today.  Moreover, the  Central Bank expects that inflation will remain low in the coming  months.

ArmInfo. The World Bank Board of Executive Directors approved the provision of a loan of 17.9 million euros to Armenia for additional financing of the program  "Social Investments and Local Development".

ArmInfo.The Ministry of Territorial Administration and Infrastructure of the Republic of Armenia announced the second additional financing within the  framework of the World Bank-funded project to improve the M11 highway  network.