Armenia Economic Report, October 2013 : Stronger Structural Reforms Needed to Offset Macroeconomic Risks
This economic report records the economic activities of Armenia for the year 2013. A steep decline in construction caused economic growth to weaken to 0.6 percent in the second quarter of 2013 (year-on-year) from 7.5 percent in the first quarter an...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/216721486641176068/Armenia-Stronger-structural-reforms-needed-to-offset-macroeconomic-risks http://hdl.handle.net/10986/26118 |
| Summary: | This economic report records the
economic activities of Armenia for the year 2013. A steep
decline in construction caused economic growth to weaken to
0.6 percent in the second quarter of 2013 (year-on-year)
from 7.5 percent in the first quarter and 7.2 percent in
2012 as a whole. Developments of the current account were
more favorable than expected earlier. The volume of metal
exports rose substantially, more than offsetting lower
international prices for copper and remittances remained
high despite the slowdown of economic growth in Russia. For
a third year in a row, fiscal policy is likely to be tighter
because of lower than budgeted capital spending. This
outcome reflects delays in the North-South corridor
infrastructure project. With continued sluggish growth
expected in Armenia’s main trading partners, including
Russia and the European Union (EU), we project growth of
about 4–5 percent a year over the medium term. Armenia’s
authorities recognize the need to improve the business
environment and competitiveness. The government’s
medium-term reform agenda, supported by a new Development
Policy Operation from the World Bank, reflects these
priorities. It includes critical business climate and public
administration reforms, aimed at strengthening
competitiveness and public sector efficiency. These are
expected to contribute to job creation through reducing the
costs of doing business for firms, expanding access to
credit to Small and medium enterprises (SMEs), and
increasing opportunities for employment and job creation
through increased trade and connectivity within and outside
Armenian borders. |
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