Reflecting the impact of COVID-19 on the economy, growth in Armenia is projected to slow to 2.2% in 2020, according to the Asian Development Outlook 2020 report. 

The report particularly noted that the growth in the region is expected to slow sharply to 2.2% in 2020 under the effects of the current health emergency and then rebound to 6.2% in 2021.

Meanwhile, what comes to Armenia the report noted that “reflecting the impact of COVID-19 on the economy, growth is projected to slow to 2.2% in 2020 with less rapid expansion in consumption, then edge up to 4.5% in 2021 as “reforms initiated in 2019 and 2020 take hold and improve infrastructure, human capital, finance, and public administration.”

Referring to the inflation, the report said: “Monetary policy is expected to remain broadly accommodative. Inflation is projected to accelerate slightly to 2.8% in 2020 on a continued rise in aggregate demand and expansionary fiscal policy, and assuming only a small effect on prices from increasing import tariffs on selected goods in the transition to the common external tariff under the Eurasian Economic Union, as well as normal weather.”

“Inflation is seen slowing to 2.2% in 2021. The 12-month inflation rate December to December is expected to remain within the central bank target band of 2.5%–5.5% at least to the end of 2021,” it added.