YEREVAN. – Due to the substantial reduction in the remittances expected from Russia—the main trading partner of Armenia—and the weak investment activity, the private sector spending in Armenia’s economy is expected to reduce by 5.2 percent in the current year.

According to the Central Bank of Armenia (CBA) report, however, the aforesaid spending is expected to gradually recover between 2016 and 2017 and record a moderate growth.

As per the report, even though the abovementioned flow of private spending will have a certain negative impact on Armenia’s economic growth, it will contribute to the country’s economic balance and stability in the future.

Under these conditions, it is estimated that the Armenian households’ final consumption spending will reduce by 3.3 percent this year.

According to the CBA report, the aforesaid factors plus the weak investment activity will result in around 14-percent drop in private investment in Armenia in the current year.