Armenia's economy contracts 13.7% y/y in Q2

YEREVAN, Aug 20 (Reuters) – ’s economy contracted 13.7% year-on-year in the second quarter of 2020 after a 3.9% growth in the first quarter, taking a hit from the novel coronavirus pandemic, preliminary official data showed on Thursday.

The decline from April to June was the result of the contraction in almost all sectors of the economy besides mining, communication services and government expenditures, Armenia’s Statistical Committee said.

The former Soviet republic’s economy had expanded 7.6% in 2019 and 5.2% in 2018.

The central bank has forecast the economy to contract by 4% in 2020 due to the negative impact of the coronavirus pandemic, but it is expected to recover and grow 5.5% next year.

International financial institutions have pledged support to Armenia to mitigate the impact of the coronavirus on the economy and support the healthcare system. (Reporting by Nvard Hovhannisyan; Editing by Toby Chopra)

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