YEREVAN, March 31, /ARKA/. According to the World Bank’s latest ‘Europe and Central Asia Economic Update, Spring 2021’ report, poverty rate in Armenia is estimated to have increased by 7 percentage points in 2020.
It says although the November 10th ceasefire halted hostilities (in Nagorno-Karabakh conflict zone), Armenia has since entered a period of heightened domestic political instability. These twin shocks led to a sharp economic contraction, increased poverty, and a fiscal deterioration.
The pandemic’s impact on vulnerable households, which has been severe, was only partially mitigated by the government’s COVID-19 response (estimated at 3.5 percent of GDP, including support through
The unemployment rate rose by 1 percentage point year on year, reaching 18.1 percent at end-September 2020.
Somewhat effective mitigation measures implemented by the government and the relatively short duration of pandemic-related restrictions prevented an even greater increase in unemployment. The poverty rate (measured at the uppermiddle-income economy poverty line) is estimated to have jumped to over 51 percent in 2020, a 7 percentage point rise.
The COVID-19 outbreak is estimated to have had a devastating impact on vulnerable households. Forecasts suggest that 48 percent of the population will remain below the $5.5 2011 PPP poverty line in 2021, driven by income losses, down only slightly from 51 percent in 2020.
Armenia’s economy shrank last year by 7.6% from the previous year, according to official numbers, of the National Statistical Committee. The government has projected 3.2% growth for 2021 and 4% (± 1.5%) inflation. ($1 – 524.48 drams). -0-