ADB predicts 4% GDP decline for Armenia in 2020September 15, 2020 - 13:09 AMT PanARMENIAN.Net - The Armenian economy will contract 4% in 2020 – down from a previous forecast of 3.5% decline – recovering to 3.5% growth in 2021, the Asian Development Bank said Tuesday, September 15 in an update to its forecasts. The ADB said in April that economic growth in Armenia was projected to slow from "the unusually high rate" of 7.6% achieved in 2019 to 2.2% in 2020 due to the impact of Covid-19. The Bank revised its forecast in July to predict 3.5% contraction, before making the latest prediction of 4% GDP decline. Under Covid-19, the economy reversed 7.0% growth a year earlier to contract by 5.7% in the first half of 2020, the report said. Agriculture grew by only 1.8%, with livestock and crops weak. Industry excluding construction fell by 2.0% as declines in manufacturing, electricity, and water supply outweighed gains in mining and quarrying. Lockdown from mid-March to mid-May postponed investment projects, slashing construction by 30.4%. Services contracted by 4.4% almost across the board. With the pandemic expected to persist through 2020, the ADB update projects recession in 2020 and, with modest recovery expected in Armenia’s trade partners, positive growth in 2021. Inflation has been low, with weak demand at home and abroad, low oil prices, and a fairly stable exchange rate, according to ADB. Azerbaijan is expected to contract by 4.3% in 2020, then post fragile 1.2% growth in 2021. Meanwhile in Georgia, the economy will contract 5% in 2020, before recovering by 4.5% in 2021. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Scholz hopes Armenia-Azerbaijan peace treaty will be signed this year German Chancellor Olaf Scholz hopes that a peace treaty between Armenia and Azerbaijan will be signed this year. Ucom equips four bus stops in Ijevan with free Wi-Fi Ucom now provides free Wi-Fi coverage in smart bus stops in four communities of Ijevan. Armenians stage more campaigns against territorial concessions to Azerbaijan Protesters blocked more roads across Armenia on Friday, April 26 in continuing attempts to scuttle territorial concessions to Azerbaijan. Czech-Armenian military cooperation discussed in Yerevan A delegation led by the Director General for the Industrial Cooperation Division of the Ministry of Defence of the Czech Republic visited Armenia. |