YEREVAN, January 14. /ARКА/. Armenia’s economy minister Vahan Kerobyan said today he expects the economy to contract by 8.5% in 2020. Speaking to reporters, he said the largest decline of 20% was reported by imports, exports and consumption.
“Nonetheless, I am optimistic about 2021 expecting a double digit growth” Kerobyan said.
He said that the government, including during today’s meeting, adopted a number of decisions aimed at protecting the economic potential and creating more favorable conditions for entrepreneurs.
He said also that the 2020 inflation will not exceed 2-2.5%, which is significantly lower than that of Armenia’s neighbors and partners – Russia, Belarus, Kazakhstan, Turkey, Iran and Georgia.
“The rise in the price of one product is compensated for by the decline in prices for others, but the general tendency is that prices for some goods on the world markets have sharply increased and Armenia cannot develop its own policy of reducing world prices,” Kerobyan said.
According to the World Bank, Armenia’s economy will contract by 8% in 2020, and grow 3.1% in 2021, and 4.5% in 2022.
The IMF predicts a 7.25% decline in Armenia’s GDP for 2020, and 1% rise in 2021. The government’s growth projection for 2021 is 3.2%. Inflation is predicted at 4% (±1, 5%).