Armenia’s economic indicators further deteriorating

By Azernews

By Rashid Shirinov

The indicators of economic activity in Armenia for the third quarter of 2016 demonstrated deterioration compared to the first half of the year.

This was said at a meeting of the Board of Armenia’s Central Bank, ARKA agency states.

During the meeting, the refinancing rate was reduced to 6.75 percent, for the sixth time since the beginning of the year.

Additionally, the Central Bank revised its expectations about the development of domestic demand. In such a situation, the Bank considers that the remaining relatively high external demand cannot compensate the weak domestic demand any longer. This creates risks of downward deviation from the projected inflation trend.

Meanwhile, Armenia’s National Statistical Service reported that the economic growth in Armenia in the second quarter of 2016 made up 1.5 percent, compared to 4.5 percent in the first three months of the year.

According to the World Bank’s latest forecast, Armenian economic growth in 2016 will make up 1.9 percent, the European Bank for Reconstruction and Development expects growth in 2 percent, Eurasian Development Bank - 2,6 percent, Fitch  - 2 percent, and Moody’s predicts slower growth of Armenia's GDP by 2.2 percent.