ArmInfo.The economy of Armenia is growing rapidly, the monthly Monitor of the Eurasian Development Bank says. The authors of the report note that the indicator of economic activity increased in August 2019 by 7.6% yoy (+ 7.0% yoy in January - August 2019).
Industrial production grew by 16.8% y / y against the backdrop of an increase in mineral production by 55.0% y / y, which is largely due to the resumption of work of the Teghut mining and processing plant. Manufacturing output increased by 10.2% yoy amid growing export-oriented agro-industrial sectors. Retail trade turnover increased by 10.1% yoy, supported by strong wage dynamics (+ 4.0% yoy) and bank lending to the population (+ 32.0% yoy).
, - note the experts of the Bank.
The Central Bank of Armenia reduced the refinancing rate by 0.25 percentage points up to 5.5% according to the results of the meeting of the Governing Council on September 10, 2019, the Central Bank of the Republic of Armenia noted the low level of inflation in the country, indicating the deflationary pressure from the external sector. The regulator expects inflation to rise to the target level (4 +/- 1.5%) in 2021- 2022. influenced by a stimulating monetary policy.
The current account deficit in the second quarter of 2019 amounted to $ 278 million, almost unchanged compared to the same period in 2018 ($ 274 million). The improvement in the state of foreign trade in goods and services (thanks to a marked increase in exports) offset the deterioration in the balance of investment income. The inflow of direct foreign investments grew in the II quarter of 2019 to 56.6 million US dollars (14.1 million US dollars in the II quarter of 2018), which allowed the CBA to increase the volume of reserve assets for the II quarter of 2019 from 2154.2 to 2220.4 million US dollars. The government approved a draft state budget providing for more? soft fiscal policy in 2020. Budget spending for the next year is planned at the level of 1880 billion drams, which is 232 billion drams more than expected in 2019. It is planned to make capital investments in the amount of 357 billion drams, which is 137 billion drams more than In 2019, the budget deficit for 2020 is planned in the amount of 183 billion drams.