The Central Bank of Armenia has presented its annual report for 2023, reflecting several key changes in the country's financial system.
The report notes that last year the Central Bank gradually eased monetary conditions by lowering the interest rate by 1.5 percentage points overall. This move contributed to a decrease in the 12-month inflation rate by 8.9 percentage points, resulting in a negative inflation rate by the end of the year, reaching -0.6%.
Armenia's banking system ended 2023 with high levels of capital and liquidity, thus ensuring the system's resilience to potential shocks. Normal development of the banking system's loan portfolio and deposits continued.
High rates of mortgage lending and real estate prices persisted throughout 2023. It is noted that there are risks of overheating in the economy, which remain relevant.
Earlier, BMG reported that at the April 30 meeting, the Central Bank of Armenia decided to reduce the refinancing rate by 0.25 percentage points, setting it at 8.25%. The Lombard repo rates were also lowered to 9.75% and the deposit rate to 6.75%.
Armenia's economic growth in the 2024 budget is projected at 7%, while inflation is targeted at 4% (±1.5%).
Economic activity in Armenia increased by 15.3% in March 2024, according to the Statistical Committee. Overall, for the first quarter of 2024, this indicator amounted to 14.3%.
