According to the World Bank’s January report on Global Economic Prospects (GEP) for 2020, although economic growth trends in the South Caucasus show a declining tendency, Armenia’s growth forecasts remain stable, unlike neighboring countries.
Specifically, a 5.1 percent growth is forecast for 2020, and 5.2 percent for 2021 and 2022, stated in a message published on the Facebook page of the World Bank’s Armenia office.
According to the report, private consumption in Armenia, strong industrial activity, and the recovery of mineral extraction contributed to the acceleration of economic growth in the South Caucasus, bringing it to around 3.7 percent.
According to the Global Economic Prospects report, in 2019, economic growth in Europe and Central Asia recorded its lowest figure in the last three years, at 2 percent. The reason was the sharp decline in economic activity in Turkey due to the impact of serious shocks in the financial market in 2018, as well as the low level of oil demand and production in Russia.
“Owing to the decline in industrial activity and the slow pace of investment flows, output growth in the region has been low. It is expected that in 2020 economic growth in the region will reach up to 2.6 percent, conditioned by the stabilization of prices for major commodities, economic growth in the eurozone, as well as the recovery of economic growth in Turkey (up to 3 percent) and Russia (up to 1.6 percent). It is expected that national projects in Russia, including investments in infrastructure and human capital, will stimulate that growth,” stated in the report.
