ArmInfo.On September 13, head of the Central Bank of the Republic of Armenia Martin Galstyan received the delegation of the International Monetary Fund, headed by the head of the IMF mission in Armenia, Iva Petrova. This is noted in the message of the Central Bank of the Republic of Armenia, which states that among the issues raised, the parties also discussed the introduction of new approaches to monetary policy.
The Governor of the Central Bank introduced the current results of the financial sector of Armenia in 2023, presented current trends in economic development, challenges and prospects, priorities of the implemented policies, and reforms of the Central Bank.
Head of the IMF mission in Armenia, Iva Petrova, expressed satisfaction with the forum organized at a high level within the framework of the 30th anniversary of the Armenian Dram.
During today's meeting, the Central Bank of Armenia and the IMF discussed the introduction of new approaches to monetary policy, the tasks and goals of the IMF mission, as well as issues related to price and financial stability, macroprudential policy, and the second stage of the program to support economic reforms in Armenia.
In mid-June this year, the IMF, under the new SBA program, provided Armenia with access to 18.4 million SDR (about $24.5 million), bringing total access to SDR 36.8 million (about US$49 million). And on the same day, it confirmed its forecast for 2023 for Armenia's GDP growth at 5.5%. As they note: "The economic outlook for 2023 is generally positive, although risks remain substantial. GDP growth is projected to decelerate but strong momentum, consumption and investment are expected to keep it at 5.5 percent in 2023. With services trade and remittances normalizing, the current account deficit is expected to widen in 2023. Inflation is expected to stabilize at the CBA's target of 4 percent within a year. The outlook is subject to elevated risks stemming from a challenging external environment, including regional tensions, tighter global financial conditions, and a slowdown in major trading partners."
The IMF also summarized: "Macroeconomic policies need to prevent overheating of the economy in the short term, while supporting inclusive and resilient growth in the medium term. To elaborate: Should growth and revenues be stronger than projected, building fiscal buffers is a priority. At the same time, revenue mobilization efforts should continue, including by broadening the tax base and tackling informality. Decisive and pro-active monetary policy tightening has been successful in containing inflationary pressures, but monetary policy needs to remain vigilant and data dependent. Financial sector risks related to the real estate sector require close monitoring by strengthening supervisory tools. To unlock Armenia's long-term growth potential, continued progress with implementation of structural reforms is needed, including by boosting trade links and diversification, enhancing access to finance, completing governance reforms, and improving climate change resilience."