YEREVAN. – The economic growth rate in Armenia has slowed down in 2013.

Prime Minister Tigran Sargsyan stated the above-said during Monday’s National Assembly discussions devoted to the 2014 State Budget. 

As per Sargsyan, there are external and internal causes for this slowdown. 

According to Sargsyan, the processes in Armenia’s main partner countries had a significant impact on the economic situation in Armenia. In addition, the World Band and the International Monetary Fund have reduced the forecasts for global macroeconomic indicators.  

From the internal factors, the PM highlighted the slow improvement—and sometimes even a regression—in the business climate. In addition, the private investment/GDP ratio has declined in the last five years.

Even though Armenia is ranked 48 in the Doing Business report, as per the premier, it can be in the top 20. Furthermore, the country is below the top 100 in several indicators.       

Tigran Sargsyan added, however, the Central Bank’s raising of the refinancing interest rate by half a percentage point—which is 8.5 percent at present—has restrained Armenia’s economic climate.