IMF further slashes economic forecast for Armenia

By AzerNews

The International Monetary Fund (IMF) once again slashes economic forecast for Armenia.

IMF experts believe the Armenian new government is not capable to ensure the projected five percent economic growth in 2014.

"The growth rate will be lower than 4.2 percent," IMF Resident Representative in Armenia Teresa Daban Sanchez told local media.

The IMF had earlier predicted a 4.3 percent economic growth for Armenia in 2014.

Sanchez explained that the forecast is conditioned by deteriorating economic situation in Russia, which faces economic difficulties following its interference in the crisis in Ukraine.

Armenia's economy seriously depends on the Russian economy and any negative change in the Russian economy is unfavorable for the Armenian economy.

Sanchez went on to say that the Armenian economy is still "highly centralized."

"The World Bank report noted that about 60 percent of the economy is in the hands of either monopolies or certain groups," she added.

Armenia's economy will hardly be able to achieve a considerable economic growth in subsequent years, the IMF's recent monetary forecasts for Armenia showed.

The economic growth in the country in 2015 and 2016 will be 4.5 and 4.7 percent respectively.

"Economic growth and inflation remain highly volatile, the external current account deficit continues to be large, and poverty and unemployment are still high," the IMF reported.