IMF Executive Board Concludes 2017 Article IV Consultation for the Republic of Armenia

Stocks and Financial Services Press Releases Friday July 14, 2017 09:17
Bangkok--14 Jul--International Monetary Fund

On June 23, 2017, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation [1] with the Republic of Armenia. Since its independence, Armenia has made significant strides in enhancing macroeconomic stability. Growth has been satisfactory with inflation under control, the fiscal situation broadly well managed, and foreign exchange reserves enhanced. Since late 2014, the significant decline in remittances and the price of copper, Armenia's main export, have weighed heavily on growth, and adversely impacted the fiscal position. In 2016, GDP growth was only 0.2 percent, deflationary pressures persisted, and the fiscal deficit rose to 5.6 percent of GDP, while the current account deficit remained below 3 percent of GDP. Economic activity in 2017 has shown signs of recovery, accompanied by a pickup in inflation and private sector credit growth, supported by monetary policy easing.

With improving outlook in major trading partners and a pickup in private sector activity, real GDP is projected to grow by around 3 percent in 2017, while inflation would reach around 2 percent by end-2017. Medium-term growth is projected at 3.5-4 percent, with potential growth now estimated by staff to be 1 percentage point lower than in the pre-crisis period. Nevertheless, there are risks: the recent recovery in remittances and copper prices may not endure, and growth in key trading partners could be weaker than expected.

Looking ahead, Armenia continues to face significant challenges. Dependence on remittances leaves the economy vulnerable to external shocks, while a shrinking labor force associated with emigration makes it difficult to generate broad-based prosperity. The authorities' efforts to promote inclusive growth and increase resilience have focused on strengthening competition and governance, diversifying exports, and new initiatives to attract foreign direct investment (FDI). On the fiscal front, inadequate revenue base has limited the potential for much needed growth-enhancing investment and contributed to the increase in public debt. Against this background, the government is strengthening revenue mobilization through the introduction of a new tax code and renewed efforts to improve tax administration.


Latest Press Release

TCP Group integrates sustainability into 5-year business plan

TCP Group, the Thai beverage and snacks group that owns, manufactures, and distributes Krating Daeng (Red Bull), Ready, Sponsor, Som Plus, Mansome, and Puriku beverages as well as Sun Snack snacks, today, announced that it has embedded far-reaching...

TMB credit card gives you best deal with discount and cash back on Grab rides

TMB credit card offers double special privileges on Grab rides from today to December 31, 2018. The first privilege, get 100 baht discount when you pay with GrabPay for the first time with TMB credit card, applying "GRABTMB" promo code, limited one per...

SET hosts Angel Investing Day for startup investment via LiVE Platform

The Stock Exchange of Thailand (SET) and Live Fin Corp Co., Ltd. (LiVE), will jointly hold "Angel Investing Day" for angel investors, aiming at delivering knowledge on how to invest in startup businesses through "LiVE Platform" – the first Thailand...

TRUE REPORTS NET PROFIT OF BAHT 10 BILLION IN 2Q18

True Corporation PLC (SET: TRUE) recorded Baht 10 billion of net profit in the second quarter of 2018 driven by all-time high service revenue and a gain from asset sales to the Digital Telecommunications Infrastructure Fund (DIF). Consolidated net profit...

Photo Release: Six-month interest-free installments of down payment for KLeasings new car loans

Ms. Patcharee Uthairatanakit, Deputy Managing Director of KASIKORN LEASING Co., Ltd., launched the "KLeaisng BIG Bonus" campaign wherein applicants for new car loans of KLeasing will be granted a special privilege of 6-month interest-free installments of...

Related Topics