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.
