Tuesday, May 16 2023 14:18

ArmInfo. The 12-month inflation has increased significantly since March 2022, reaching 10.3% at the  end of the second quarter, and then, as a result of the implemented monetary policy, it gradually decreased and reached 8.3% at the end of the year. This was stated by the Deputy Governor of the Central  Bank Armen Nurbekyan at May 15 sitting of the NA Standing Committee on Financial-Credit and Budgetary Affairs, presenting the annual report on the activity of the RA Central Bank.

As the press service of the RA NA reports, it was noted that the  inflation rate will gradually weaken and stabilize around the target  4% index from the second half of 2023 under the influence of the  implemented consistent monetary policy.  In the period from March to  December 2022, the nominal cost of the Armenian AMD compared to the  US dollar was about 20%, significantly promoting the mitigation of  the expansion of the inflationary environment under the influence of  foreign demand.  The Deputy Governor of the Central Bank also  mentioned that the high rate of growth of economic activity is  maintained in Armenia, which is significantly supported by the high  external demand formed in the service sector, as well as the growth  of the construction industry.

During 2022, as a result of the significant increase in international  visitors and financial flows, the AMD exchange rate has significantly  increased in nominal and real terms.  In the fourth quarter of 2022,  economic growth was 12.8%, which was slightly lower than the estimate  of the previous programme of the Central Bank, but still remains  high. The latter was mainly contributed by the high external demand  in the service sector.  The Deputy Governor of the RA Central Bank  responded to many questions of the Committee members, which were  related to inflation, monetary policy, international investments,  etc.

The questions of the deputies of the NA Civil Contract Faction  Tsovinar Vardanyan and Davit Arushanyan were about the application of  possible sanctions against our country.  Armen Nurbekyan answered  that sanctions are a priority for us, everything is being done so  that the financial system of Armenia is free from sanctions. "We are  having continuous discussions with the Government colleagues on this  issue," Armen Nurbekyan said.  The deputy of the NA Civil Contract  Faction Hovik Aghazaryan positively evaluated the report of the  Central Bank, proposed to legislatively regulate the existing  problems regarding construction in order to avoid a possible crisis  in this sector.

The Chair of the NA Standing Committee on Financial-Credit and  Budgetary Affairs Gevorg Papoyan spoke about the problems of the  construction industry and shared his concerns. "We have a problem of  standards. That issue should be resolved, because each standard  reduces risks with it," the Committee Chair underlined.

The annual report on the activity of the RA Central Bank was taken  into consideration.