Left Menu
Development News Edition

World Bank cuts 2020 GDP forecasts for Georgia, Armenia and Azerbaijan

The South Caucasus economy is expected to contract by 4.9%, the World Bank said in its economic update report, citing prolonged pressure from the pandemic and low commodity prices. "Activity is projected to pick up to 2.7% in 2021, as the shocks related to the COVID-19 pandemic dissipate and tourism recovers alongside improving consumer and business confidence in Armenia and Georgia," the bank said.

Reuters | Updated: 07-10-2020 17:21 IST | Created: 07-10-2020 17:13 IST
World Bank cuts 2020 GDP forecasts for Georgia, Armenia and Azerbaijan
Representative Image Image Credit: Pixabay

The World Bank has cut its 2020 economic growth forecasts for Georgia, Armenia and Azerbaijan because of the coronavirus crisis but expects the three South Caucasus nations to recover next year. The South Caucasus economy is expected to contract by 4.9%, the World Bank said in its economic update report, citing prolonged pressure from the pandemic and low commodity prices.

"Activity is projected to pick up to 2.7% in 2021, as the shocks related to the COVID-19 pandemic dissipate and tourism recovers alongside improving consumer and business confidence in Armenia and Georgia," the bank said. "Activity is expected to firm in Azerbaijan in 2021 as oil prices stabilise, but the overall recovery will be muted."

The World Bank said that the downside scenario for 2021 projected a much weaker recovery, with 1.8% growth. Georgia's gross domestic product is expected to shrink by 6% in 2020, reflecting mobility restrictions at the start of the pandemic, job losses and continued restrictions on international tourism. The bank projected 4% growth in 2021, having previously forecast a 4.8% contraction in 2020 and 4% growth in 2021.

The bank expects Armenia's economy to shrink by 6.3% in 2020 but expand by 4.6% in 2021. It had previously forecast a 2020 contraction of 2.8% and 4.9% growth in 2021. GDP in oil-rich Azerbaijan is expected to contract by 4.2% in 2020, down from a previous forecast of 3%, but the bank expects a 1.9% rebound next year, up from a previously forecast of 2.5%.

The World Bank drafted its forecasts before a flare-up in the conflict between Azerbaijan and Armenian forces over Azerbaijan's breakaway Nagorno-Karabakh region.

Also Read: Turkey's Erdogan calls on Armenians to stand against leadership amid clashes with Azerbaijan


TRENDING

OPINION / BLOG / INTERVIEW

Turbulence surrounding tobacco control in Ghana

... ...

Refugee compassion and response: Ideas to mitigate disasters now and in their future

Their homeland becomes a forbidden territory for them and more likely than not, their journey to foreign soil is no less traumatizing, not to say deadly. It is crucial to help refugees live a life of dignity and purpose....

Inadequate water infrastructure causes a tidal wave of coronavirus in rural Alaska

... ...

Videos

Latest News

Biden notes 'grim' jobs report, urges broad action on coronavirus aid

President-elect Joe Biden said Fridays grim jobs report shows the economic recovery is stalling, and urged the U.S. Congress to pass a coronavirus relief bill immediately and follow up with hundreds of billions of dollars in more aid in Jan...

Chinese professor pleads guilty to lying to FBI in Huawei-related case

A Chinese professor accused by U.S. prosecutors of helping steal American technology to benefit Chinas Huawei Technologies Co Ltd on Friday pleaded guilty to lying to the FBI, but is expected to be allowed to return home after prosecutors d...

Amidst positive steps, challenges in Africa ‘loom large’, UN chief tells Security Council

Addressing a debate on cooperation between the two international organizations, Secretary-General Antnio Guterrescredited UN political missions and peacekeeping operations in supporting an array of activities, from a ceasefire agreement i...

Honduras asks U.S. to prolong temporary migration protections after hurricanes

Honduras has asked Washington to prolong temporary migration protections for thousands of its citizens in the United States to help mitigate the impact of hurricanes Eta and Iota, Foreign Minister Lisandro Rosales said on Friday. Some 44,00...

Give Feedback