Armenia has high economic growth potential – Moody's

 19:14,

YEREVAN, APRIL 17, ARMENPRESS.  Armenia has high economic growth potential for the next years, which can reach 5-6%, ARMENPRESS was informed from the April report of International rating agency Moody's.

According to the report, the Armenian economy has potential for stable growth and despite the possible stagnations of this year, solid economic and financial management can mitigate the impact of shocks.

Moody's predicts stagnation in Armenia this year mainly due to coronavirus and the lower oil price affecting regional demand. ''There is potential for high economic growth in Armenia during the upcoming few years, which can reach 5-6%. Armenian economy is expected to grow in 2020 by just 0.5%, but it will rapidly restore from 2021'', reads the report.

The reports notes that the macroeconomic policies and reforms in Armenia restrain the negative impacts of economic shocks.

The reports highlights that Armenia's sovereign rating can improve if the reforms continue, raising the competitiveness of the economy, institutional reputation and efficiency, on the other hand the sovereign rating of Armenia can be decreased from a loss of reform momentum.  

Edited and translated by Tigran Sirekanyan