Azernews.Az

By Jamila Babayeva

The World Bank has predicted negative economic tendencies for Armenia in 2014.

"The continuing Ukrainian crisis and the weakening of Russian ruble can have a negative impact on Armenia's economy," the WB's report "Armenia: Looking for More Dynamism" indicated.

The document specified that the negative consequences might range from lower demand for exports to the impact of a weak ruble on dollar-denominated remittances sent home by Armenian migrants working in Russia.

"The economic slowdown in Russia can play a key role in Armenia's economic growth, as Armenia is largely dependent on Russia in the sphere of import, money transfers and foreign investments," the report reads.

The WB forecasted that the slowdown in the Russian economy will be a key downside risk for Armenia, as it heavily depends on Russia for import demand, remittances, and foreign investment.

"Protracted recession in the Euro area is another downside risk, as the European Union accounts for one-third of Armenia's merchandise exports. The strengthening of global financial terms is another issue for Armenia since it's a new-comer in the capital market," the report noted.