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Armenian Central Bank forecasts more modest GDP growth for 2021

panarmenian.net2 days ago
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Armenian Central Bank forecasts more modest GDP growth for 2021

March 17, 2021 - 18:56 AMT

PanARMENIAN.Net - The Central Bank of Armenia has revised its economic growth forecast for the country in 2021. Its governor Martin Galstyan says Armenia’s Gross Domestic Product (GDP) will expand by 1.4% instead of 2% that was forecast before the start of the year, the Armenian service of RFE/RL reports.

“It is mainly due to the slowdown recorded in certain sectors of the economy during the fourth quarter [of 2020] and in the first quarter of this year, in particular, in industry, services, agriculture,” Galstyan told a news conference on Tuesday, March 16.

The Armenian economy contracted by 8.5% in 2020 against the background of the 44-day war unleashed by Azerbaijan against Nagorno-Karabakh and the Covid-19 pandemic.

Galstyan said inflation, including increase in prices for basic foodstuffs, is mainly influenced by the international market situation as well as the devaluation of Armenia’s national currency, the dram, which has lost nearly 10 percent of its value since last y...

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