At the meeting of the National Assembly's Standing Committee on Financial and Credit Issues on May 13, Martin Galstyan, the Chairman of the Central Bank of Armenia, outlined the forecast for the country's economic situation.
According to forecasts presented within the framework of monetary policy, Armenia is expected to gradually emerge from the deflationary zone it has been in for several months. It is projected that by the end of 2024, the inflation rate will be 1.3-1.5%.
In April of this year, consumer prices in Armenia decreased by 0.7% compared to April of the previous year, following a 1.2% decrease in the previous month.
Galstyan also presented a report on monetary policy for the first quarter of 2024. He emphasized that this year there are risks of slowing economic growth both in the global economy and in Armenia's main partner countries. Global inflation is decreasing, but prices for key goods and services remain high in partner countries.
Galstyan also noted that economic activity in Armenia remained high in the first quarter of 2024, thanks to significant growth in trade and industry. However, external demand for local services has slightly weakened, although domestic demand continues to be supported by investment growth.
Nevertheless, Galstyan pointed out that the high economic activity in the country is due to temporary external factors rather than the real potential of the Armenian economy. After accounting for these factors, the real potential for economic growth is estimated at 5-5.5% annually.
Earlier, BMG reported that Armenia's economic growth in the state budget for 2024 is envisaged at 7%, with inflation set at 4% (±1.5%).
According to data from the Statistical Committee, economic activity in Armenia grew by 15.3% in March 2024. Overall, for the first quarter of 2024, this indicator amounted to 14.3%.
