The Asian Development Bank (ADB) has published its Asian Development Outlook (ADO) 2019 Update forecast.
Accordingly, the ADB forecasts GDP growth of 7.1% in the world this year, as well as 5.2% in Armenia for 2021 and 3.5% for 2022, as the country’s economy recovered faster than anticipated during the first half of the year.
Agriculture expanded by a strong 7.1% on higher crop production. Services grew by 5.3%, with increases in trade, transportation, food, and administrative and real estate services. Construction grew by 5.5%, while industry grew by 1.3% due to gains in mining and quarrying, electricity generation, and water and waste management. Private consumption in Armenia also expanded by 5.4% on higher remittances, and public consumption grew by 3.2% with higher spending on social services. Investment, measured by gross fixed capital formation, surged by 9.5% on higher government and private capital spending.
Inflation in developing Asia is expected to remain in check, at 2.2% this year and 2.7% in 2022. The current trend of higher international commodity and food prices could stoke inflation in some of the region’s economies.