APRIL 2 (The Bulletin) — Armenia’s economy minister, Tigran Khachatryan, said that the coronavirus will wipe out any previously projected economic growth this year.
Economists had been predicting another strong year of growth for Armenia with a GDP rise of around 7.5% but it has been hit hard by the spread of the coronavirus – with 822 infections, the highest in the region – and COVID-19, the disease caused by the coronavirus.
The Armenian Central Bank has also said that economic growth will slow to 0.7% in 2020, but Mr Khachatryan, the economy minister, said that it was too early to even predict this level of growth.
“We believe that in 2020 there will be a significant reduction in economic indicators as opposed to optimistic forecasts made at the beginning of the year,” he was said.
Fitch, the ratings agency, warned that the economic fallout from the coronavirus will damage Armenia’s banking sector and increase the ratio of nonperforming loans. It also said the government’s current account deficit would increase from 1% of GDP to 5%.
ENDS
— This story was first published in issue 441 of the Central Asia & South Caucasus Bulletin
— Copyright the Central Asia & South Caucasus Bulletin 2020