The Economist’s Intelligence Unit has projected a 3.8% growth for Armenia’s GDP in 2018.

The projection has come from Maximilien Lambertson, The Economist Analyst for Russia, Poland, Kazakhstan, Georgia and Armenia.

Lambertson has stated that the growth in remittances will slow this year and the expansion of exports is unlikely to be sustained at the current level.

“In the medium term, we do not expect Armenia to achieve the high rates of growth seen before the 2008 financial crisis, much of which stemmed from rapid and unsustainable expansion in the construction sector. While further growth in investment will be assisted by some pro-growth policies undertaken by the government, a strong rebound is unlikely,” said Maximilien Lambertson, pointing out that high financing costs and a difficult business environment will continue to weigh on investment and future growth prospects.

According to the expert, the Armenian real GDP grew by 6.8% in 2017, supported by a recovery in remittances and export revenue.

“The Armenian economy exceeded expectations in 2017, rebounding strongly from the 2015-16 regional slowdown brought on by the collapse in global oil prices. Private consumption, investment and export all drove the recovery in growth in 2017. The renewed growth in investment is especially welcome as it had declined from about 40% of GDP before the 2008 global financial crisis to less than 18% in 2016,” noted Maximilien Lambertson.