The World Bank forecasts that global economic growth will strengthen to 2.7 percent in 2017 as a pickup in manufacturing and trade, rising market confidence, and stabilizing commodity prices allow growth to resume in commodity-exporting emerging market and developing economies.
According to the World Bank’s June 2017 Global Economic Prospects, growth in advanced economies is expected to accelerate to 1.9 percent in 2017, which will also benefit the trading partners of these countries. Global financing conditions remain favorable and commodity prices have stabilized. Against this improving international backdrop, growth in emerging market and developing economies as a whole will pick up to 4.1 percent this year from 3.5 percent in 2016.
Growth in Europe and Central Asia is forecast to accelerate broadly to 2.5 percent in 2017, and to 2.7 percent in 2018, supported by continued recovery among commodity exporters and unwinding of geopolitical risks and domestic policy uncertainty in major economies in the region.
Armenia is expected to grow at a 2.7 percent rate in 2017 and by 3.1 percent in 2018.
According to the World Bank, geopolitical tension in the region or at its periphery could suppress growth. A re-escalation of violence in Syria could undermine investor and consumer confidence. A terrorist attack in Russia, a cargo blockade in the eastern region of Ukraine, and a continued dispute between Armenia and Azerbaijan are instances of turbulence in the region.
