Tuesday, March 14 2023 19:54

ArmInfo.The FAO index has stabilized in recent months and there are no new upward trends.  Chairman of the Central Bank of Armenia Martin Galstyan stated this on March 14 during a press conference.

At the same time, the head of the Central Bank noted that the FAO  index stabilized at a higher level than it was in 2020, being almost  50 points higher. Specifically, he noted the downward dynamics of the  FAO index for a number of product groups. For example, for vegetable  oil/oils, after an increase to 240 points in 2022, a decline to 130  points followed in February 2023, and for wheat, after an increase to  180 points in 2022, a decline to 150 points followed in February  2023, which in both cases is above the base 100 points.  A decrease  in the FAO index was also observed for dairy and meat products, and  for meat products almost to the base 100 points, and for dairy  products - to almost 120 points.

Current trends indicate that in the future, due to the tightening of  monetary policy by the central banks of developed countries, a  decline in the US economy and the GDP of other developed countries  will follow.

Therefore, as Martin Galstyan noted, there is a risk of recession. In  this case, he did not rule out that prices for a number of food  products (wheat, oil , sugar, dairy and meat products) will decrease.

"Our expectations are related precisely to the fact that as a result  of such a recession, outside pressure on the Armenian economy will be weak," he concluded.