Armenia’s projected GDP growth may be absorbed by increased military spending

Armenia’s projected GDP growth in 2016 may be absorbed by increased military spending and injections into the Karabakh economy, according to economist Vilen Khachatryan.

YEREVAN, April 8. /ARKA/.  Armenia’s projected GDP growth in 2016 may be absorbed by increased military spending and injections into the Karabakh economy, according to economist Vilen Khachatryan. Speaking at a news conference today he said although he did not want to jump to conclusions, but the risk is there. 

“Even taking this into account, we need to act thoughtfully and carefully, and show everyone that in such a situation we can have real growth,' he said.

According to Khachatryan, Armenia’s GDP growth rate in January and February was quite good ranging between 4-5%. The government’s projection for the year is 2.2%.

Earlier this week, Hossein Samiei, International Monetary Fund (IMF) Mission Chief to Armenia, said the IMF did not expect a significant impact of the latest upsurge in violence in and around Nagorno-Karabakh on Armenia’s economic growth. IMF  has even revised upward its outlook for Armenia’s economic growth for 2016 to 2.25% -2.5%. -0-