Armenia’s economy is expected to contract by 4 per cent this year, the Asian Development Bank (ADB) said on Tuesday. However, it expects Armenia to bounce back with 3.5 per cent growth next year as the country begins to emerge from the economic devastation caused by coronavirus (Covid-19) pandemic.
Armenia’s neighbors Azerbaijan and Georgia will see a 4.3 and 5 percent decline, respectively, the Bank said.
Economies across developing Asia will contract this year for the first time in nearly six decades but recovery will resume next year, as the region starts to emerge from the economic devastation caused by the coronavirus disease (COVID-19) pandemic, according to a report released by the Asian Development Bank (ADB) today.
The Asian Development Outlook (ADO) 2020 Update forecasts -0.7% gross domestic product (GDP) growth for developing Asia this year—marking its first negative economic growth since the early 1960s. Growth will rally to 6.8% in 2021, in part because growth will be measured relative to a weak 2020. This will still leave next year’s output below pre-COVID-19 projections, suggesting an “L”-shaped rather than a “V”-shaped recovery. About three-quarters of the region’s economies are expected to post negative growth in 2020.
The inflation forecast for developing Asia is revised downwards to 2.9 per cent this year from 3.2 per cent forecast in April due to continued low oil prices and weak demand. Inflation for 2021 is expected to ease further to 2.3 per cent.