Thursday, December 6 2012 21:51
Armenian Central Bank forecasts 4.4% growth of private spending and 5.5% growth of private investments for 2013
ArmInfo. Armenian Central Bank forecasts 4.4% growth of private spending for 2013 versus 7.2% in 2012, says the monetary policy program of the Armenian CB ofr Q4 2012. In 2013 a 5.5% growth of private investments is forecasts versus 4.8% envisaged for 2012. CB forecasts 4% growth of private consumption for 2013 versus 8% in 2012, while the growth of government expenditures will total 7.4% versus 4.1% envisaged for 2012.
The source reports that total domestic demand in absolute terms will growth 4.8% versus 5.7% envisaged in 2012. "Growth rates of private spending and private consumption will be in harmony with the economic growth in the country in the mid-term outlook," the source reports.
In addition, the economic growth forecasted for the mid-tern outlook will speed up private investment growth rates. The forecast is based on activation of the construction sector in Q3 2012 and on the investment projects that are currently being implemented in the industrial and service sector.
The CB expects positive balance of private spending of 2012 to gradually fall and zero by the end of the next year in case of low growth rates of private consumption and slow restoration of private investments in 2013. This will remedy non-compliance of demand and supply in the private sector. In such state of affairs, inflation pressure of private spending in the consumer market will be weak next year - 0.2-0.3 percentage points. Starting from early 2014 the impact of private spending on inflation will be neutralized in the mid-term outlook.
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