The state debt of Armenia continues to decline - to $ 6.7 billion by July 1, 2018
The state debt of Armenia continues to decline - by 3% or $ 164 million for May-June 2018, amounting to $ 6.7 billion (3.2 trillion drams), which was triggered by a 6% decline in domestic debt and external debt by 1.5%. According to the preliminary data of the RA Ministry of Finance, provided by the ArmInfo National Statistical Service, in January-June 2018, the national debt fell only by 1.1%, and after the growth in January-April by 1.4%, since May there has been a decline.
Domestic debt for the first half of the year decreased by 2%, and external - by 0.8%. On an annual basis, in June 2018, by June 2017, the national debt increased by 9.2% due to an increase in external debt by 10.3% and domestic debt by 4.7%.
The annual growth of the national debt and migration deepened the specific debt load per capita to $ 2.3 thousand by July 1, 2018, of which $ 1.8 thousand comes from external debt, against respectively $ 2.1 thousand and $ 1.7 thousand by July 1, 2017. According to statistics on July 1, 2018, the population of Armenia was 2.970 million, compared to 2.980 million a year earlier and 3.012 million five years earlier.
The degree of coverage of foreign debt with gold and foreign exchange reserves declined during the first half of 2018 from 39.6% to 36.8% amid a tiny drop in external debt, with a relatively substantial decline in reserves. A year earlier, by July 1, 2017, the degree of coverage of external debt with gold and foreign exchange reserves was 40.8%.
As a comparison, in June 2017, by June 2016, the growth of the external debt by 9% and domestic debt by 33% increased the total state debt of Armenia by 15%. Only in January-June 2017, external debt grew by 2.8%, domestic debt - by 5.5%, which increased the total national debt by 3.3%.
It should be noted that according to the World Bank's economic growth forecasts updated in June, the forecast for 2018 has been improved from the previous 3.8% to the current 4.1%, and by 2019 the growth expectations have been kept at 4%. According to the share of Armenia's national debt in GDP, the World Bank predicts 58.6% for 2018, with a slight decrease to 58.3% in 2019.