PanArmenian.Net
15 Sep 2020, 15:37 GMT+10
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.
Get a daily dose of London Mercury news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to London Mercury.
More InformationFive to watch on Scotland's summer tour of the Pacific
John Kear- Long-serving head coach leaves Wales rugby league post
RE Park City puts a new twist in growing consignment market - Park Record
Tuske To Take On Ownership Of Alabama Radio Properties
EFC, Skandha Team To Boost MCC Infrastructure, Services
GOP E&C Subcommittee Leadership, Assignments Get A Tweak
NEW YORK, New York -U.S. stock markets closed with broad gains on Thursday, led by strong performances in U.S. tech stocks, while European...
LONDON/STOCKHOLM: The Persson family is ramping up its investment in the H&M fashion empire, fueling renewed speculation about a potential...
PARIS, France: L'Oréal is making a fresh play in the booming premium haircare segment with a new acquisition. The French beauty conglomerate...
MENLO PARK, California: Robinhood is giving European investors a new way to tap into America's most prominent tech names — without...
NEW YORK, New York - U.S. stocks diverged on Wednesday for the second day in a row. The Standard and Poor's 500 hit a new all-time...
NEW YORK CITY, New York: The U.S. dollar continues to lose ground, weighed down by growing concerns over Washington's fiscal outlook...