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YEREVAN, MARCH 7, ARMENPRESS. It is predicted that in 2016 Armenia's economic growth will continue to be slow: 2.5 %, due to Russia's economic decline and structural weaknesses. "The deteriorating external conditions, particularly in the context of Russia’s economic decline, GDP growth in 2015 slowed down by 3% “,” Armenpress "reports the World Bank mentioning in “Armenia: monthly economic summary “.
According to this source, the budget deficit (4% of GDP) is mainly covered through external debt. 2016 changes in the cost structure are due to the increase of appropriations in the form of subsidies to the economic sector. Earlier this year, the Central Bank lowered the refinancing rate to 10.25%. Overall, in 2015 stability was maintained in the banking sector, but the total volume of loans fell by 3.1%. The current account improved, due to the sharp decline in import volumes. Although the reduction of exports to Russia and the of remittances from Russia, the increase was more than expected, due to the impact of one-time factors such fruitful agricultural year and the launch of a new copper mine.
World Bank experts estimate that the economic activity index rose to 5.5% in January 2016 through tradable sectors (compared to the same period last year).