YEREVAN, SEPTEMBER 15, ARMENPRESS. The Asian Development Bank forecasts that this year Armenia’s GDP will decline by 4%, a further drop from the -3.5% that was projected in April 2020, the ADB Armenia Mission told Armenpress.

The ADB said the GDP growth is expected to pick up to 3.5% in 2021.

The statement says: “Economies across developing Asia will contract this year for the first time in nearly six decades but recovery will resume next year, as the region starts to emerge from the economic devastation caused by the coronavirus disease (COVID-19) pandemic.

The Asian Development Outlook (ADO) 2020 Update forecasts -0.7% gross domestic product (GDP) growth for developing Asia this year—marking its first negative economic growth since the early 1960s. Growth will rally to 6.8% in 2021, in part because growth will be measured relative to a weak 2020. This will still leave next year’s output below pre-COVID-19 projections, suggesting an “L”-shaped rather than a “V”-shaped recovery. About three-quarters of the region’s economies are expected to post negative growth in 2020.

The ADO 2020 Update has lowered its GDP growth for Armenia to -4%, a further drop from the -3.5% that was projected in April 2020. GDP growth is expected to pick up to 3.5% in 2021. Under COVID-19, Armenia’s economy reversed 7.0% growth a year earlier to contract by 5.7% in the first half of this year. The inflation forecast for Armenia is revised downwards to 1.4% this year from 2.8% forecast in April, due to continued weak demand at home and abroad, low oil prices, and a fairly stable exchange rate. “The full impact of the COVID-19 pandemic on the Armenian economy is yet to be fully assessed, but global disruption from COVID-19 is expected for the rest of 2020, further weakening trade, remittances, and tourism,” said ADB Country Director for Armenia Paolo Spantigati.