Wednesday, December 21 2011 21:00
Central Bank of Armenia forecasts deceleration in growth rates of private expenses and investments for 2011-2012
ArmInfo. According to the forecasts of the Central Bank of Armenia (CBA), at the end of Q4 2011 the annual growth of private expenses will make up almost 3% due to the growth in private consumption and private investments. At the same time, the amount of state expenditures will undergo almost no changes. The CBA's program of monetary policy for Q4 2011 says that the domestic demand in economy will annually grow by 3%. In case of the specified scenario, the growth of private expenses and investments in 2011 will be 4% and 4.3% respectively.
The source says that over Jan-Sept 2012 the volume of private expenses will increase by 3.8% as compared to the same period of 2011, and the volume of state expenditures will increase by 7.5%. As a result, the domestic demand will grow by almost 4%.
The CBA forecasts decline in the growth rates of private investments given the expectations for slow recovery of the domestic and foreign demand, the economic entities' pessimism about the future economic situation and, the negative trends in the construction sector.
As a result, the CBA forecasts 4.3% growth for private investments in 2011 and 5% growth for Jan-Sept 2012. The main sources of private investments will be the funds and loans provided to the private sector.
The growth of private consumption is forecasted to decelerate due to deceleration of economic activity, as well as to deceleration of the growth rates of money transfers from abroad. As a result, the private consumption growth will make up 4% in 2011 and 3.4% in Jan-Sept 2012.
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