Left Menu
Development News Edition

IMF tells Armenia to press ahead with reforms, expects 4.5 pct growth

Reuters | Updated: 19-03-2019 17:46 IST | Created: 19-03-2019 17:46 IST
IMF tells Armenia to press ahead with reforms, expects 4.5 pct growth
The International Monetary Fund expects Armenia's economic growth to slow to 4.5 percent this year from 5.2 percent in 2018, reflecting the weaker global environment and copper prices, the fund's representative said.

The South Caucasus country of 3.2 million depends heavily on aid and investment from former imperial master Russia, whose economic downturn has hit Armenian exports as well as remittances from Armenians working there in recent years. The economy expanded 5.2 percent year-on-year in 2018 down from 7.5 percent in 2017, the result of a slowdown in economies of Armenia's trading partners and underperformance in the agriculture and mining sectors.

The government expects 4.9 percent growth in 2019. Yulia Ustyugova said the fund projected smaller contribution to growth from final consumption amid weaker remittances this year, although it might be compensated by higher investment.

She said risks to the outlook were mainly external, including "increased global trade tensions, turbulence in global financial markets or a pickup in regional geopolitical tensions". "The key challenge facing policymakers is to press ahead with the carefully-planned structural reforms with maintaining macroeconomic and financial stability," Ustyugova said.

The IMF supports the "ambitious" reform plan of the government led by Prime Minister Nikol Pashinyan, who came to power in a peaceful revolution last spring after weeks of mass protests against corruption and cronyism. Pashinyan bolstered his authority in the former Soviet republic when his political bloc won an early parliamentary election in December.

The reform plan includes changes to tax and custom codes and are focused on fighting corruption and improving the business environment. Ustyugova said the IMF expected the current account deficit to decline to 6-7 percent of gross domestic product in 2019, down from 8 percent last year.

The IMF said in February it had reached a staff-level agreement on a $250-million three-year precautionary stand-by agreement with Armenia "to support the new government's reform plans and strengthen resilience against external shocks". The agreement is subject to approval by the fund's executive board. (Editing by Janet Lawrence)



New farm bills in India: Focusing on farms or farmers?

... ...

Kenya’s COVID-19 response: Chaos amid lack of information

Confusing numbers and scanty information on how effective curfews and lockdowns have been in breaking transmission have amplified coordination and planning challenges in Kenyas response to COVID-19. Without accurate data, it is impossible t...

Farkhad Akhmedov: Calculating the price of impunity from the law

In insistences such as the battle over the Luna, Akhmedov has resorted to extreme legal machinations to subvert the High Courts decision and keep his assets from being seized. ...

Guinea’s elections hearken back to the autocracy and violence of its past

... ...


Latest News

35 more deaths take Delhi's COVID-19 toll to 6,163; infection tally 3.44 lakh

The national capital recorded 35 more fatalities on Thursday, taking the COVID-19 death toll to 6,163, while 3,882 fresh cases pushed the infection tally to over 3.44 lakh, authorities said. These fresh cases came out of the 58,770 tests co...

IUML MLA KM Shaji summoned by ED, property details collected

On the direction of Enforcement Directorate ED, the Kozhikode Corporation officials measured and estimated property of Indian Union Muslim League IUML MLA KM Shaji here on Thursday, in connection with a bribery case that the investigation a...

Thailand revokes protest ban that backfired

Thailand revoked an emergency decree on Thursday aimed at ending months of protests against Prime Minister Prayuth Chan-ochas government and the monarchy, after it inflamed anger and brought tens of thousands of people onto Bangkoks streets...

UK's largest temple spreads COVID-19 treatment trials message to Indians

The UKs largest temple has joined hands with the University of Oxford to help spread awareness within the British Indian community of the varsitys ongoing trials exploring effective and speedy COVID-19 treatments. The BAPS Shri Swaminarayan...

Give Feedback