Armenia’s Central Bank expects the country’s economy to grow in 2024 by 5.6%, the head of the regulator Martin Galstyan said.
"Depending on the dynamics of the implementation of the government's planned expenditures, it will be clear to what extent the private sector would be ready to join these expenditures and investments, which would be paired with government capital expenditures and provide a synergy effect," he said speaking at a parliamentary discussion on the draft state budget for 2024.
At the same time, Galstyan noted that the Central Bank is concerned over increasing current expenditures planned by the government for 2024.
"The concern is that capital expenditures may not be fully implemented, as the current year shows," he said, adding that the share of unfulfilled capex for 9 months of this year is higher than last year.
According to the Central Bank governor, if capital expenditures are not fulfilled to the specified extent but current expenditures continue, it will lead to demand-driven economic growth and inflation, making the Central Bank to respond to curb excess demand and raise the refinancing rate, "but we hope that we will not follow this scenario."
The government predicts that Armenia's economy will grow by 7% in 2024. Inflation in the draft state budget for 2024 is set at 4% (±1.5%).
The draft budget calls for 2.8 trillion drams (USD 7 billion) in revenues and 3.1 trillion drams (USD 7.8 billion) in spending. The projected deficit is 341.1 billion drams (USD 854 million), ARKA reports.
