Armenia to retain leadership in terms of economic growth among EEU countries in 2023 – EDB

Eurasian Development Bank (EDB) analysts expect Armenia to retain leadership in economic growth among the Eurasian Economic Union’s (EEU) member countries in 2023, the bank said in its Telegram channel.

According to the macroeconomic forecast made for the 6 EEU member countries for 2023-2025, the Armenian economy is expected to grow by 7.5% in 2023 amid gradual stabilization of domestic demand, growth of exports to the EEU countries, resumption of Amulsar gold mine development and low external demand amid weakening global economic activity.

According to EDB forecasts, inflation in Armenia will slow down to 2.5% in 2023 thanks to weakening of external price pressure, strengthening of the Armenian currency dram, and stabilization of consumer demand.

The bank analysts also expect a decrease in the key refinancing rate to around 9% on the background of a sustained slowdown in inflation.

It is expected that the average annual exchange rate of the US dollar will be 394 drams due to faster growth of exports over imports and the influx of remittances and foreign citizens into the country.

Armenia’s government growth projection for 2023 is set at 7%, and inflation is set at 4% (±1.5%). The European Bank for Reconstruction and Development (EBRD) expects Armenia’s economy to grow by 4% in 2023 and by 4.8% in 2024.

The Asian Development Bank’s forecast is 6.5% in 2023 and t5.5% in 2024, the International Monetary Fund (IMF) said in its latest World Economic Outlook report for April 2023 that it expects Armenia’s economy to grow by 5.5% in 2023 and the World Bank expects Armenia’s economy to grow by 4.4% in 2023

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