IMF downgrades 2016 economic growth outlook for Armenia to 1.9%
In its previous report issued in October 2015, the IMF expected Armenia’s GDP would grow 2.2% in 2016 and IMF Mission Chief to Armenia Hossein Samiei said jus one week ago that economic growth in Armenia would be between 2.25% and 2.5% in 2016.
In its April report for 2017, the IMF predicts a 2.5% economic growth to Armenia.
Inflation in Armenia is projected to stand at 2.6% (3.4% in the previous forecast) in 2016 and at 4% in 2017.
According to the IMF forecast, unemployment rate in Armenia would rise from 17.7% in 2015 to 18.2% in 2016 and 18.3% in 2017.
The IMF analysts downgraded also economic outlooks for other CIS countries, including Georgia, Ukraine and Turkmenistan.
They expect a 1.1% economic decline in the CIS countries instead of the stagnation projected in their January report and a 0.4% growth predicted in their October report.
The IMF analysts predict recovery in CIS countries in 2017 with 1.3% GDP growth.
They say Russia’s economy is thought to fall 1.8% in 2016 against the 0.6% decline predicted in their October report and 1% decline predicted in January, Azerbaijan’s economy would drop 3% against the 2.5% growth projected in October and Belarusian economy would go 2.7% down against the 2.2% projected previously.
Kazakhstan’s economy is expected to grow 0.1% in 2016 against the 2.4% projected in the previous report, Uzbekistan would enjoy a 5% growth instead of the previously predicted 7%, Turkmenistan 4.3% instead of 8.9%, Ukraine 1.5% instead of 2% , Georgia 2.5% instead of 3%, Tajikistan 3% instead of 3.4%, Kyrgyzstan 3.5% instead of 3.6% and Moldova 0.5% instead of 1.5%.
Developed countries had their 2016 and 2017 economic growth outlooks downgraded as well – to 1.9% and 2% respectively instead of the previous (January) 2.1% for both years.
The United States’ economic growth outlook was downgraded from 2.6% to 2.4% and that of the euro zone from 1.7% to 1.5%.
Economic growth outlooks for countries with forming market and developing countries were downgraded by 0.2% and 0.1% to 4.1% and 4.6% respectively.
The IMF upgraded its 2016 economic growth outlook for China to 6.5% from the previous 6.3%.
As a result, the IMF’s 2016 outlook for global GDP growth shed from 3.4% to 3.2% and its 2017 forecast from 3.6% to 3.5%.
The IMF says the global economy growth stood at 3.1% in 2015.
In Armenia’s government budget for 2016, GDP growth is projected at 2.2%.
According to the World Bank’s latest report, economic growth in Armenia will be recorded at 1.9% in 2016, the Eurasian Development Bank predicted 2-2.5% growth, Fitch up to 2%, and Moody’s predicts slowdown to 2.2%.
The National Statistical Service of Armenia says the country’s economic growth stood at 3% in 2015 against the 4.1% projected in the government budget, GDP amounted to AMD 5 047.4 billion or about $10.56 billion ($1 – AMD 481.94 exchange rate in 2015). --0---