Monday, April 9 2018 12:51
Karina Melikyan

Armenian Central Bank: The duration of the acceleration of domestic demand growth is due to the increase in private consumption and private investment

Armenian Central Bank: The duration of the acceleration of domestic  demand growth is due to the increase in private consumption and  private investment

ArmInfo. The Council of the  Central Bank of Armenia recorded a continuation of the trend of  accelerating the growth of domestic demand, which was manifested by a  significant excess of the projected indicators of private consumption  and private investment. The Central Bank stated that the growth of  domestic demand was facilitated by an expanded monetary policy and a  relatively high growth in bank lending to the economy (in February,  17.6% per annum). As the press service of the Central Bank told  ArmInfo on April 9, the Council of the Central Bank made such  conclusion at the last March meeting.

At the same meeting, the consonance of the development of the  external sector was also presented to the forecasts of the Central  Bank of Armenia, namely, the stabilization of the growth of the world  economy continued. In particular, in the Eurozone, growth slightly  exceeded the projected rate, reaching 2.7%, while in the US and  Russia, the growth of the economies to some extent gave way to the  forecasts, amounting to 2.5% and 1.5%, respectively. In the  international markets of basic commodities, inflationary tendencies  were kept, consistent with the forecasts of the Central Bank of  Armenia, and a restrained rise in price of dairy products and grains  was observed in the international food markets in conditions of price  reduction.  Based on macroeconomic development and inflation trends,  the Fed and the Central Bank of Europe continued to raise the key  rate, while the CBR retained a policy of easing monetary conditions.  According to the Central Bank of Armenia, in the coming months,  inflationary tendencies will remain on the international food markets  and under these conditions a weak inflationary influence from the  external sector is expected.

At the same meeting, the consonance of the development of the  external sector was also presented to the forecasts of the Central  Bank of Armenia, namely, the stabilization of the growth of the world  economy continued. In particular, in the Eurozone, growth slightly  exceeded the projected rate, reaching 2.7%, while in the US and  Russia, the growth of the economies to some extent gave way to the  forecasts, amounting to 2.5% and 1.5%, respectively. In the  international markets of basic commodities, inflationary tendencies  were kept, consistent with the forecasts of the Central Bank of  Armenia, and a restrained rise in price of dairy products and grains  was observed in the international food markets in conditions of price  reduction.  Based on macroeconomic development and inflation trends,  the Fed and the Central Bank of Europe continued to raise the key  rate, while the CBR retained a policy of easing monetary conditions.  According to the Central Bank of Armenia, in the coming months,  inflationary tendencies will remain on the international food markets  and under these conditions a weak inflationary influence from the  external sector is expected.

The development of the financial sector was characterized by the  Central Bank as follows: in February- March, short-term interest  rates basically stabilized near the refinancing rate. This was  partially facilitated by the use by the regulator of instruments of  absorbing excess liquidity.

The CB Board believes that, within the framework of the forecasted  development, it will be necessary in the future to phase out the  stimulating impact of monetary conditions in stages. But, proceeding  from the expected insignificant inflationary influence from the  external sector and the economy of Armenia and taking into account  the considerable mitigation of the additional inflationary  expectations accumulated at the end of last year, the CB Board still  prefers to maintain the refinancing rate at the same level of 6%. As  for the possible tightening of monetary conditions, the Central  Bank's Board will correct them in the monetary policy program of the  next quarter.  The Central Bank retained the refinancing rate at the  previous level of 6% at a meeting of the Council on March 27. Along  with this, at the same level, the rate for lombard repo was set at  7.5%, and deposits attracted from banks - 4.5%. In 2017, after the  February fall from 6.25% to 6%, at the subsequent meetings (in March,  May, June, August, September, November and December), the Central  Bank left the refinancing rate unchanged, also in February-March  2018. Inflation in February 2018 was 0.5%, and in comparison with  February 2017 - 3.3%. Economic activity in Armenia in  January-February 2018 compared with the same period in 2017 increased  by 8.6%. The GDP growth in Armenia in 2017 was 7.5%.

POST A COMMENT
Input digits     


News
Ameriabank named the Bank of the Year 2024 in Armenia by The  Banker MagazineAmeriabank named the Bank of the Year 2024 in Armenia by The Banker Magazine
EDB forecasts decline in Armenia`s GDP growth rate from 6% to 5.5% in  2024-2025 EDB forecasts decline in Armenia`s GDP growth rate from 6% to 5.5% in 2024-2025
OPEC Fund to provide 50 million euro loan to Armenia OPEC Fund to provide 50 million euro loan to Armenia
EDB plans to invest $200-250 million in Armenia in 2025-2026- MandronEDB plans to invest $200-250 million in Armenia in 2025-2026- Mandron
GIZ presents water resources management program  in ArmeniaGIZ presents water resources management program  in Armenia
Economic activity growth in Armenia slowed to 8.1% in January-October  2024 Economic activity growth in Armenia slowed to 8.1% in January-October 2024
Armenia and Algeria to collaborate in trade, economy and tourismArmenia and Algeria to collaborate in trade, economy and tourism
EDB ready to support Mastara reservoir construction once a proposal  is submitted - PodguzovEDB ready to support Mastara reservoir construction once a proposal  is submitted - Podguzov
EDB: Armenia withdrew its application for financing Amulsar mine  projectEDB: Armenia withdrew its application for financing Amulsar mine  project
Armenia`s government approves draft agreement between EAEU and  Mongolia  Armenia`s government approves draft agreement between EAEU and  Mongolia  
Armenian Airlines announce seasonal discounts Armenian Airlines announce seasonal discounts 
Events organized to raise Tavush residents` awareness of sustainable  energy technologies Events organized to raise Tavush residents` awareness of sustainable  energy technologies 
Kazakh Central Depository granted membership of Central Depository of  Armenia Kazakh Central Depository granted membership of Central Depository of  Armenia 
Reduced expenses on Armenia`s economic development to reduce budget  potential - Luys FoundationReduced expenses on Armenia`s economic development to reduce budget  potential - Luys Foundation
IDBank donated 10,000,000 AMD to the 27th IDBank donated 10,000,000 AMD to the 27th "For You, Armenia!" Telethon
There is a shadow turnover of funds in the bus transportation sector  - Prime MinisterThere is a shadow turnover of funds in the bus transportation sector - Prime Minister
Gevorg Papoyan: We are now very close to the real volumes of our  exportsGevorg Papoyan: We are now very close to the real volumes of our  exports
1.4% y/y inflation recorded in Armenia in Nov 2024 1.4% y/y inflation recorded in Armenia in Nov 2024 
Armenia`s minister of economy explains higher number of jobs Armenia`s minister of economy explains higher number of jobs 
Armenia`s NA ratifies protocol granting status of independent  international organization to EFSDArmenia`s NA ratifies protocol granting status of independent  international organization to EFSD
Armenian NA approves 2025 draft budgetArmenian NA approves 2025 draft budget
Opposition NA factions vote against government-submitted 2025 draft  budgetOpposition NA factions vote against government-submitted 2025 draft  budget
EFSD to provide Armenia with $200 mln loan for construction of  Kajaran tunnelEFSD to provide Armenia with $200 mln loan for construction of Kajaran tunnel
 Armenian authorities aim to establish a stable and favorable  environment for SMEs in the market Armenian authorities aim to establish a stable and favorable  environment for SMEs in the market
“The Will to Get Back on Your Feet Again” ։ A Film Series Funded by AraratBank
EFSD to become fully independent international organizationEFSD to become fully independent international organization
Fluctuations do not cause changes in 2025 draft budget of Armenia Fluctuations do not cause changes in 2025 draft budget of Armenia 
Upper Lars checkpoint open for transport
RA Finance Minister, German Ambassador discuss projects implemented with KfW supportRA Finance Minister, German Ambassador discuss projects implemented with KfW support
CBA hosting the 27th meeting of the Advisory Council on Monetary Policy for EAEU Member StatesCBA hosting the 27th meeting of the Advisory Council on Monetary Policy for EAEU Member States
Armenia`s gross international reserves 5.8% down by Nov 2024Armenia`s gross international reserves 5.8% down by Nov 2024
Armenian ECPC Chairman leaves for Paris Armenian ECPC Chairman leaves for Paris 
Armenia to host Plenary Session of PABSEC GAArmenia to host Plenary Session of PABSEC GA
RA Minister of Economy: Armenia and Georgia have great potential for  collaboration RA Minister of Economy: Armenia and Georgia have great potential for  collaboration 
863 Armenian trucks waiting to pass through Upper Lars checkpoint863 Armenian trucks waiting to pass through Upper Lars checkpoint
In 2025, Armenia will allow duty-free import of up to 9,000 tons of  cattle meat into the countryIn 2025, Armenia will allow duty-free import of up to 9,000 tons of  cattle meat into the country
EEC Council approves exemption from import customs duty on butter for  ArmeniaEEC Council approves exemption from import customs duty on butter for  Armenia
Wind power generation project discussed with Asian Development BankWind power generation project discussed with Asian Development Bank
Vahe Davtyan: Pressure on ANPP is part of broader geopolitical  competitionVahe Davtyan: Pressure on ANPP is part of broader geopolitical  competition
Gevorg Papoyan: Reducing target inflation threshold in the short term  will have negative economic consequencesGevorg Papoyan: Reducing target inflation threshold in the short term  will have negative economic consequences
 Economy Minister expects construction of Masdar`s solar station to  start in 2025 Economy Minister expects construction of Masdar`s solar station to  start in 2025
Economy Minister attributes Armenia`s economic slowdown to  Statistical Committee`s outdated calculation methodology Economy Minister attributes Armenia`s economic slowdown to  Statistical Committee`s outdated calculation methodology 
Depputy head of Armenia`s State Revenue Committee attends the Global  Forum on Transparency and Exchange of Information on TaxationDepputy head of Armenia`s State Revenue Committee attends the Global  Forum on Transparency and Exchange of Information on Taxation
Mechanism of financial support of industrial cooperation is new  integration level in real economy - minister Mechanism of financial support of industrial cooperation is new  integration level in real economy - minister 
Modi plans to enter Armenia`s market next year Modi plans to enter Armenia`s market next year 
Ameriabank Named Armenia’s Best Bank for Real Estate by EuromoneyAmeriabank Named Armenia’s Best Bank for Real Estate by Euromoney
Upper Lars check point closedUpper Lars check point closed
EDB Deputy Chairman: We have allocated a grant to Armenia to support  electronic vehicle passport projectEDB Deputy Chairman: We have allocated a grant to Armenia to support  electronic vehicle passport project
Armenian Banks: About HSBC, Ardshinbank and Conducting Business in the New Environment of Sanction RestrictionsArmenian Banks: About HSBC, Ardshinbank and Conducting Business in the New Environment of Sanction Restrictions
Ardshinbank Successfully Completes Acquisition of HSBC ArmeniaArdshinbank Successfully Completes Acquisition of HSBC Armenia
AraratBank Receives VISA Strong Partnership AwardAraratBank Receives VISA Strong Partnership Award
EU invests EUR 12.9 million to strengthen nuclear safety, radiation  protection and radioactive waste management infrastructure in ArmeniaEU invests EUR 12.9 million to strengthen nuclear safety, radiation  protection and radioactive waste management infrastructure in Armenia
Lusine Gevorgyan: Armenia is ready to host events  that meet  international standardsLusine Gevorgyan: Armenia is ready to host events  that meet  international standards
Ardshinbank Donates 120 Million AMD to the Hayastan All-Armenian FundArdshinbank Donates 120 Million AMD to the Hayastan All-Armenian Fund
Armenia`s government approves quota for duty-free import of electric  cars next year Armenia`s government approves quota for duty-free import of electric  cars next year 
Armenia extends restrictions on cement import Armenia extends restrictions on cement import 
Idram is now available on Wildberries!Idram is now available on Wildberries!
"Armenia" bloc MP: Armenia`s economic dependence on EAEU and Russia  never been so high
Armenia to categorize penalties for violating cash register usage  rulesArmenia to categorize penalties for violating cash register usage  rules
Eduard Hakobyan to be the new head of State Revenue CommitteeEduard Hakobyan to be the new head of State Revenue Committee
Read more
Exchange rates
05.12.2024
RUB3.920.07
USD403.030.31
EUR424.191.29
GBP512.572.48
CAD286.690.38
JPY26.850.15
CNY55.480.12
CHF455.971.79