On 9 July, The Eurasian Development Bank (EDB) has updated its macroeconomic forecast for 2021 and the medium term, saying the 2021 projection for aggregate GDP growth of EDB member states (Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, Russia, and Tajikistan) has been raised by 0.7 purchasing power to 4% due to strong support from the global economy, reported arka.am. 

The report said that the revision is attributable to an improved GDP growth estimate for Russia this year, from 3.3% to 4.1%. The pace of Russia’s economic recovery has exceeded expectations. Oil prices are higher than projected before and higher budget revenues are likely to result in additional support for business activity on the spending side.

The EDB’s GDP growth forecasts for Armenia and Belarus have also been raised to 4.2% and 1.3% in 2021, respectively. The stronger economic recovery of Russia, a key trading partner of Armenia and Belarus, has boosted the exports of these countries in the first half of the year. However, Belarus is projected to see a slowdown in economic growth in the second half of the year due to the introduction of restrictive measures by the U.S., EU, and UK.

The Eurasian Development Bank (the “EDB” or the “Bank”) is an international financial institution established to promote economic growth in its member states, extend trade and economic ties among them, and support integration in Eurasia through investment. The Bank’s charter capital totals $7 billion, including $1.5 billion of paid-in capital and US $5.5 billion of callable capital. Armenia became a full member of Eurasian Development Bank in April 2009. Its contribution to the Bank’s capital is $100,000. The EDB’s investment portfolio in Armenia currently consists of 14 projects in an amount of $227.9 million.