The UN projects a 5.8 percent GDP growth in Armenia in 2017. In its World Economic Situation and Prospects (WESP) report the UN predicts 3.8 and 3.6 percent growth in Armenia in 2018 and 2019 respectively.
According to the report, Armenia has reported vibrant economic activity indicators. The Un says “recovery of remittances from the Russian Federation is contributing to the acceleration of economic activity in Central Asia and the Caucasus.”
“Improved terms of trade, a more supportive external environment and less volatile macroeconomic conditions, including tapering inflation and stabilized exchange rates, have created a more favourable environment for the region’s economies,” the report reads.
According to the UN, “In Armenia, the economy has bounced back strongly, amid rapid industrial growth and higher copper prices.”
According to the report, 2017 global economic growth had reached three per cent – its highest since 2011 – as crisis-related fragilities and the adverse effects of other recent shocks have subsided.
The improvement is widespread. Roughly two-thirds of the world’s countries have experienced stronger growth in 2017 than in the previous year, and movement is expected to remain steady at three per cent in 2018 and 2019.
Despite the improved short-term outlook, the global economy continues to face longer-term challenges, including trade policy changes and rising geopolitical tensions.
The report highlighted that the improved macroeconomic situation has opened a door for reorienting policies, including to increase economic diversification; reduce inequality; support long-term investment; and tackle institutional deficiencies. It noted that addressing these challenges can generate stronger investment and productivity, higher job creation and more sustainable medium-term economic growth.