GDP growth of Armenia accelerated to 7.5% in 1Q: EDB research

17.07.2013 13:01
GDP growth of Armenia accelerated to 7.5% in 1Q: EDB research

YEREVAN, July 17./ARKA/. Armenia’s GDP growth accelerated to 7.5% in the first quarter of 2013, according to “Macro-monitoring of the CIS” published by the Eurasian Development Bank.

Such economic activity in Armenia is due to high industrial growth rate as a result of increase in agricultural output processing, metal ore mining and primary metal manufacturing, as well as due to relatively strong domestic demand risen by migrants’ transfers (+8.7%).

The experts also say despite some growth in export-oriented sectors of Armenia economy, the foreign economic activity has deteriorated. It occurred due to reduction in international reserves and devaluation of the national currency.

“EDB anticipates a slowdown of GDP in Armenia to 5% in 2013. Inflation rate is expected to reach at least 5.5%,” the document says.

As a whole, the EDB analysts note the industrial production tumbled in the CIS (-0.2%) amid slowdown of export and investments. Therefore, annual GDP of the CIS dropped by 1.7%.

At the same time, EDB forecasts 3.3% hike in CIS economies in 2013 and acceleration to 4% in 2014.

“We suppose that the economic growth in the CIS was not full in 2012 and first half of 2013. If no significant outer or inner shocks occur, the CIS economy may bound back to its post-crisis growth rate (2010-2011),” the research states.

According to the National Statistical Service of Armenia, economic activity in Armenia rose by 5.3% in January-May 2013 from a year earlier. The GDP is projected at 6.2% in 2013.

EDB was established by Russia and Kazakhstan in January 2006 with the purpose of support to market economy of participant-states. Charter capital of the bank exceeds $1.5 billion. Participant-states of the bank are Russian Federation, Kazakhstan, Armenia and Tajikistan. -0—


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