According to the World Economy forecast, it is supposed that 2020 will end with a 4.4% economic decline, informed Atom Janjughazyan, the RA Minister of Finance, during the preliminary discussions of the draft budget 2021, in the NA Standing Committees.
"For Russia, as a country of strategic partner, the forecast made in June has relatively improved in October. If in June it was predicted that the economic decline in Russia will be 6.6% this year, then in October it was updated to 4.1%, but it should be taken into account that in the case of Russia, the growth rate for 2021 has been reduced. If in June it was predicted that the growth would be 4.1%, the revision is estimated at 2.8%. The situation is similar for the Eurozone. We had a negative 10.2% expectation in June, from October it became 8.3%, and as for 2021, instead of a 6% increase in June, the revised October index is estimated at 5.2%," the Minister said.
Janjughazyan informed that in the first half of the year due to the impact of COVID-19 in Armenia, the GDP decreased by 5.7%, and the main negative impact was registered in the services sector. The decrease in demand was due to the reduction of consumption and investments.
According to Janjughazyan, the Draft State Budget for 2021 in Armenia predicts a 6% economic decline for 2020, whereas 4.8% growth for 2021. The Minister also said that the Draft State Budget for 2021 supposes that 2020 will finish with a Nominal GDP of 6 trillion 248 billion drams.
