Thursday, May 12 2011 16:56
Central Bank of Armenia: 2.1% economic growth fixed in Armenia in 2010
ArmInfo. 2.1% economic growth was fixed in Armenia in 2010, Chairman of the Central Bank of Armenia Artur Javadyan said in parliament on Thursday when presenting the report on implementation of the monetary-credit program of the CBA for 2010.
The chief banker said that the growth was mostly due to sphere of services (4.6% growth), and industry (9.5%). However, unprecedented fall in the growth rates by 13.4% was observed in agriculture. The increase in economy crediting contributed to stabilization of economic growth. Over 2010 the credit portfolio of the Armenian commercial banks grew by almost 185 bln AMD (26.3% growth), and the assets of the banking system increased by 235 bln AMD (15% growth).
In the structure of loans, the so called "business credits" considerably increased (32.2% growth), which were mostly directed to the industrial production and to the sphere of services. The crediting of households also grew (19.8% growth), which is mostly related to mortgage crediting.
In 2010 a trend of reduction in interest rates was observed, which was possible thanks to implementation of the program of anti-crisis measures. As a result, the share of taxes in GDP of Armenia increased by 3.1 pct points to 25.3% by late 2003. As regards the share of assets in GDP, it grew by 2.6% to 44.5% by late 2010. Javadyan said that the indices of assets were unprecedented for Armenia. Over the past three years this growth indicator was only 16.6%. Only in 2008 28% growth was registered.
A trend of inflation growth was observed in early 2010, which was conditioned by the expansive policy launched in 2009. A big role belonged to the devaluation of the national currency, as well as to the growth of tariffs of communal services. Under these conditions, in early 2010 the Central Bank toughened the monetary-credit terms, having increased the refinancing rate by 2.6%.
Growth in inflationary processes was observed in the second half of 2010, which was connected with the growth of international prices of food commodities, including those in the domestic market. As a result, in 2010 inflation made up 9.4%, of which 7.5% was the growth in food prices. Nevertheless, in the second half of 2010 the CBA did not toughen the measures.
To note, according to the forecasts of the IMF, the economic growth in Armenia in 2011 will make up 4.6%, inflation – 9.3%. The government debt in GDP will be 45.6%. At present the refinancing rate is 8.5%. The CBA Board raised it from 7% to 7.25% on May 11 2010, and retained it at this level till February 8 2011, when it was raised to 7.75%, afterwards to 8.25% on March 4, and to 8.5% on April 12.
Active consumer lending causes double-digit growth in bad loans 
Luys Foundation: Armenian government continues to face challenges in budget planning
Armenia`s brandy and winemaking industry in crisis - economist 
Even at embryonic stage, powerful impetus given to economic activity in energy sector - ENA acting manager 
Armenian NA OKs ENA nationalization 
China preparing to open new chapter of One Belt, One Road initiative with involvement of Armenia - diplomat 
The Merger between "Ardshinbank" CJSC and "Ardshininvestbank" CJSC Has Been Completed
Ticket packets 1.2% of total number of transport tickets in Yerevan