Armenian finance ministry revises downward 2021 growth forecast

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YEREVAN, November 18. /ARKA. Armenia’s Ministry of Finance has revised the 2021 GDP growth forecast downward by 1.6 percentage points, Finance Minister Atom Janjughazyan said on Tuesday.

He said the revision was prompted by the outbreak of hostilities in Artsakh, which, given the current degree of uncertainty, according to the ministry’s estimates, will affect the GDP forecast for 2021 by 1.6 p.p. “This in mind, the 2021 growth was reduced to 3.2%,” Janjughazyan said.

According to him, both nominal GDP and tax revenue indicators and deficit will be revised, provided that spending is maintained and the deficit increases.

As for the nominal size of GDP, according to the minister, if earlier it was projected at 7 trillion 95 billion drams for 2020, it is now obvious that it was overvalued by 1 trillion drams.

“And this is not only an Armenian phenomenon, it is typical for all countries, since the degree of uncertainty is quite high,” Janjughazyan said.

According to the draft state budget, the GDP forecast for 2021 has been revised to 6 trillion 720 billion drams, which is down from earlier projected 7 trillion 143 billion. ($1 – 497.14 drams).

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