ArmInfo. In the medium term, inflation will go down to 4% in Armenia, Gevorg Papoyan, Chairman of the Standing Committee on Financial-Credit and Budgetary Affairs, Parliament of Armenia, said in an interview with ArmInfo.
7% economic growth is budgeted in Armenia for this year, with 4% (+1.5%) inflation. This June, Armenia's Central Bank revised its economic growth forecast - from 1.6% forecast for March up to 4.9%. This June, 8.1% annual inflation was recorded in Armenia, with the consumer price index rising by 10.3% this June as compared with last June.
"As to solving inflation-related problems, the Central Bank is the key operator. We recently had discussions with the Central Bank in Parliament. We demanded that the regular use all the means at its disposal to bring the medium-term inflation down to 4%. The Central Bank chairman promised us to do it," Mr Papoyan said.
As regards the causes for the spiraling inflation now, it is the global inflation tends. Inflation is rising not only in Armenia, and this process is even more rapid in most countries than in Armenia. On the other hand, inflation expectations are not so bad in Armenia. As to the causes of economic activity growth by 11.8% in Armenia in the first half of 2022, particularly the 26.9% growth in the services sector, Mr Papoyan said that the government is supposed to create a competitive environment in the country.
"People are coming to Armenia, spending their holidays in Armenia and investing in Armenia - and they are not from Russia alone, but also from the United States. American Armenians, who sold their housing in Armenia, are now purchasing it in their homeland. I think they are entertaining their hopes in our state. And it is, of course, to the credit of this very state," Mr Papoyan said.