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The World Bank has forecast a 5.1% economic growth for Armenia in 2020, with the growth projected to reach 5.2% in 2021-2022.

The World Bank's Global Economic Prospects (GEP) January 2020 report says growth in the region decelerated to an estimated three-year low of 2% in 2019, reflecting a sharp slowdown in Turkey as a result of acute financial market pressure in 2018, as well as in Russia amid weak demand and cuts in oil production. Sustained weakness in exports growth in the region has continued amid slowing manufacturing activity and investment.

In Central Europe, the boost to private consumption in early 2019 from rising real wages and government transfers helped to sustain above-potential growth.

The World Bank says growth in the South Caucasus is forecast to decelerate, however estimations of Armenia’s economic growth are pretty solid at this stage.

Firming growth in the South Caucasus, to an estimated 3.7 percent in 2019, was supported by private consumption, and on the supply side by strong manufacturing growth, as well as by a recovery in mining production in Armenia, the World Bank says.

Global economic growth is forecast to edge up to 2.5% in 2020 as investment and trade gradually recover from last year’s significant weakness but downward risks persist, the report says.