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Tuesday, August 22, 2017

IMF predicts economic challenges for Armenia, disburses $17 million

The International Monetary Fund (IMF) recently released its first review under extended arrangements with Armenia, which enables the disbursement of $17 million.

The report said Armenia saw steady growth between 2010 and 2012, with growth slowing in 2013 and 2014. The growth rate is expected to be 2.6 percent in 2014, with only a gradual increase predicted for 2015.

Inflation fell below the Central Bank of Armenia's (CBA) ideal range, but it is expected to rise again as depreciation of the dram will likely drive import prices up. Also, the further depreciation of the Russian ruble affected the regional economic landscape at the beginning of the year and again in November.

The IMF recommends that decisive action be taken by the government to reform macroeconomic conditions and boost growth. Part of this would likely come from the creation of a financial space that would encourage social spending and investments over the medium term.

The report and Armenian authorities said challenges in the country are likely to continue, thus increasing the need for an economic policy to lower deficits and create financial buffers, with decisive reform a high priority.

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International Monetary Fund 700 19th Street, N.W., Washington, D.C. - 20431

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