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EBRD annuls economic growth rate for Armenia

22 January 2015 [17:14] - TODAY.AZ

/By AzerNews/

By Mushvig Mehdiyev

The European Bank for Development and Reconstruction has downgraded its forecast for the economic growth in Armenia, according to Haykanak Zhamanak, a local newspaper.

The EBRD predicted a zero economic growth in Armenia, saying the economy of the post-Soviet nation is now expected to stagnate in 2015.

The European bank claims that the depreciation of the ruble has increased pressures on the currencies of economies with strong trade, investment and remittances ties to Russia, particularly with a sharpest decline in Armenia, along with Belarus and Turkmenistan.

Armenia has drawn the poorest outlook from the EBRD, remaining considerably far behind its regional neighbors Azerbaijan and Georgia. Given the possible impact of the sharp fall in oil prices, Azerbaijan, an energy exporter, will also see the negative effects on its economy, according to the EBRD. Thus, the bank forecasts 1.5 percent economic growth in Azerbaijan, while the figure is 4.2 percent for Georgia.

For now, the EBRD forecast is the worst prognosis by an international financial organization related to Armenia's economic growth for this year.

Just three months ago, the European bank announced a 3.5 percent raise for Armenia's economy in 2015, according to 1in.am, local media outlet.

The EBRD experts downgraded the growth rate based on the correlation of Armenia's economy with the deepening economic hassle in Russia, which, in turn, is linked to the fall in oil prices.

Strong subjection to Russia's economy has seriously affected the public opinion about Armenia's free economy. The country deepened its dependence on Russia by joining the Eurasian Economic Union, a trade bloc of the post Soviet nations.

Armenia's strong reliance on the migrant money sent from Russia was also among the decisive factors behind the most recent Moody's outlook for Armenia, which featured a downgrade to negative from stable.

Meantime, the National Statistics Service announced the latest report on poverty rate in Armenia. Nearly 32 percent or 967,000 of the overall population live on a poverty threshold, as the average monthly income of one third of the population is under $82, according to NSS.

Armenia needs $176 million annually to eradicate the poverty in the country.

URL: http://www.today.az/news/regions/138417.html

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