Armenia Economic Update, Spring 2015 : Accelerating Reforms, Increased Uncertainty

Armenias economic growth remained resilient in 2014. Output expansion slowed to 3.4 percent in 2014, relative to 3.5 percent in the previous year. On the supply side, while services particularly transport and telecoms), agriculture, and manufacturi...

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Bibliographic Details
Main Author:	World Bank Group
Format:	Report
Language:	English en_US
Published:	World Bank, Washington, DC 2015
Subjects:	CURRENCY MISMATCHES TARIFFS GROWTH RATES MONETARY POLICY DEFICIT RISKS HOLDING BASIS POINTS OIL PRICE NPL ECONOMIC GROWTH DEPOSITS FREE TRADE AGREEMENT INFORMATION TECHNOLOGY MACROECONOMIC MANAGEMENT INTEREST DEPRECIATION IMPORT GOVERNMENT SPENDING IMPORT TARIFF SLACK REMITTANCE EXCHANGE ECONOMIC DEVELOPMENTS BALANCE OF PAYMENTS CONSUMER GOODS MARKET PRESSURES LABOR FORCE TAX COLLECTION REVENUES FISCAL POLICY WELFARE RENEGOTIATION BORROWERS SLOWDOWN TAX CONSUMPTION GROWTH BOND YIELDS EXTERNAL TRADE INFLATION SUPPLY SIDE BILLS SAFETY NETS TRADE AGREEMENTS BUDGET CENTRAL BANK MATURITY CUSTOMS DUTIES EFFECTIVE EXCHANGE RATE LABOR MARKET TRADE BALANCE ECONOMIC SLOWDOWN CURRENCY EXPORT GROWTH POLICY RESPONSES CURRENT ACCOUNT INCOME GROWTH INFLATIONARY PRESSURES IMPORT DEMAND TRADING MONETARY FUND MARKETS DEBT PRIVATE INVESTMENT RETURN BUDGET DEFICIT STRUCTURAL REFORMS IMPORTS TRADE POLICY DIRECT INVESTMENT LOANS RESERVES TRADE AGREEMENT DEBT SERVICE GROSS DOMESTIC PRODUCT FINANCE TAXES BANKING SECTOR FISCAL DEFICIT EXPENDITURE GOVERNMENT SECURITIES EQUITY INVESTORS CONSUMPTION INTEREST PAYMENTS GOOD EXTERNAL DEMAND INTERNATIONAL RESERVES BUFFER UNEMPLOYMENT RATE FINANCIAL CRISIS COMPETITIVENESS FOREIGN DIRECT INVESTMENT TREASURY BILLS TRADE DEFICIT FOREIGN INVESTMENT DEMAND BALANCE OF PAYMENTS DEVELOPMENTS SAFETY NET AGGREGATE DEMAND ECONOMY EXPENDITURES CURRENT ACCOUNT DEFICIT CURRENCY MARKETS SHARES REAL EXCHANGE RATE COUPON RATE MARKET FOREIGN EXCHANGE SECURITIES PUBLIC DEBT TREASURY DOMESTIC DEMAND BILL CORE INFLATION INTERESTS TAX CODE CURRENCY DEPRECIATION GOODS MONETARY CONDITIONS GROWTH RATE INVESTMENT BOND EUROBOND SHORTFALLS COMMERCIAL BANKS SHARE INVESTMENT CLIMATE POVERTY TARIFF SUPPLY GLOBAL DEMAND COUPON UNCERTAINTY REVENUE PRIVATE INVESTMENTS ACCOUNT DEFICIT PRIVATE CONSUMPTION EXTERNAL DEBT INVESTMENTS CONSUMER PRICE INDEX EXCHANGE RATE DEBT SERVICING REAL EFFECTIVE EXCHANGE RATE FOOD PRICES REMITTANCES PUBLIC SPENDING CAPITAL INVESTMENT PRICE INDEX TRADING PARTNERS WEIGHTS TRADE REGIME NONPERFORMING LOANS DOLLAR VALUE CONSOLIDATION HUMAN DEVELOPMENT DEBT MATURITY
Online Access:	http://documents.worldbank.org/curated/en/2015/06/24575089/armenia-economic-update-accelerating-reforms-increased-uncertainty http://hdl.handle.net/10986/22072

Description
Summary:	Armenias economic growth remained resilient in 2014. Output expansion slowed to 3.4 percent in 2014, relative to 3.5 percent in the previous year. On the supply side, while services particularly transport and telecoms), agriculture, and manufacturing performed well, construction, mining, and energy made negative contributions to output growth. On the demand side, net exports were the main contributor to growth, offsetting weak private consumption and negative private investment. However, by the last quarter, Russias economic slowdown and the steep depreciation of the ruble began to depress remittances, FDI inflows, and exports. Few jobs were created during the year, and the unemployment rate reached to 17.6 percent in 2014. A weak labor market, combined with slower emigration and return migration from Russia, are likely to have undermined growth in the incomes of the poor. Declining remittances and higher inflation in the last few months of 2014 reinforced these trends. Poverty at US$2.5/day was 30.2 percent in 2014, still above the levels recorded in the period leading up to the 2008 financial crisis. Fiscal policy continued to be prudent throughout the year, and monetary tightening responded to the currency depreciation. Developments in Russia will adversely affect economic growth in 2015, underscoring the needfor Armenia to press ahead with structural reforms.

Armenia Economic Update, Spring 2015 : Accelerating Reforms, Increased Uncertainty

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