ArmInfo.An International Monetary Fund (IMF) team, led by Iva Petrova, visited Yerevan during September 13-25 to hold discussions with the Armenian authorities for the 2023 Article IV consultation and the second review under the Stand-By Arrangement (SBA) with Armenia.  At the conclusion of the discussions, Ms. Petrova issued the following statement:

ArmInfo.

ArmInfo.

ArmInfo. The weak deflationary impact from the external sector on the Armenian economy will  continue. During the press conference held on October 31, Governor of the RA Central Bank, Martin Galstyan, presented such a forecast regarding the reduction of the refinancing rate from 9.75% to 9.5%.

ArmInfo.The Central Bank of Armenia further reduced the refinancing rate - this time by 0.25  percentage points - from 9.75% to 9.5%. This is the fourth decrease this year, after two years of increase with reaching a historical maximum of 10.75% at the end of 2022 and maintaining this level until June 13 of this year, when the first decrease of 0.25 percentage points took place. , then on August 1 there was a second decline by  the same amount, and on September 12 the decline was more noticeable - by 0.5 percentage points.

ArmInfo.Governor of the Central Bank of Armenia Martin Galstyan expressed fears that the  problem of underfulfillment of budget capital expenditures will not be resolved in 2024 as well.

ArmInfo.In Armenia, the price index of industrial products decreased in January-September 2023  compared to the same period in 2022 to 101.3% from last year's 104.1%. This was observed against the background of a decline in industrial sector volumes by 0.6% - to AMD 1,800bln ($4.7 billion), while a year earlier an increase of 10% was recorded.

ArmInfo. The Eurasian Development Bank (EDB) has released the latest Macroeconomic Review for its six member states. This regular publication provides a roundup of the macroeconomic situation and projects near-term developments in the member countries. The review also contains detailed statistics on key macroeconomic indicators.

ArmInfo.

ArmInfo.

ArmInfo. According to the EBRD-prepared report "Regional Economic Prospects in the EBRD  Regions", in 2023, economies in Eastern Europe and the Caucasus have been adjusting to the extreme shock to their economies caused by the war on Ukraine. 

ArmInfo. The European Bank for Reconstruction and Development (EBRD) has further improved its  GDP growth forecast for Armenia for 2023 from the previous 5% to an updated 6.5%, expecting a slowdown in 2024 to 4.5% (versus the previously announced retention at 5%). And this is the highest GDP  growth that the EBRD expects in 2023 for the Eastern Europe and Caucasus region. This forecast is given for 2023-2024, taking into account geopolitical events, which are an important source of risks  of slowing economic growth.

ArmInfo.

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.

ArmInfo. The deflationary impact from the external sector on the Armenian economy will continue. This was  stated on September 12 by head of the Central Bank of the Republic of Armenia Martin Galstyan at a press conference regarding the third reduction in the refinancing rate this year from 10.25% to 9.75%.

ArmInfo. The Central Bank's decision to reduce the refinancing rate suggests that  inflation risks are more manageable today. Chairman of the Central  Bank of Armenia Martin Galstyan stated  during a press conference on  September 12.

ArmInfo.The Central Bank has improved its forecast for 2023 for Armenia's GDP growth from the  previous 6.9% to an updated 7.2%. The new forecast is driven by  strong growth in the construction and services sectors.

ArmInfo.The Central Bank of Armenia again reduced the refinancing rate this time by 0.5  percentage points - from 10.25% to 9.75%.

ArmInfo.Deflation in Armenia is very negligible due to the moderate reduction in food prices and  rising prices for services. Moreover, among food products, the prices  of sunflower oil, flour, cereals and pasta decreased most noticeably,  while vegetables and fruits had a much smaller deflationary effect.   At the same time, service tariffs continued to rise, slightly more  modestly than last year, with double-digit growth in transportation  and recreation, and medical services began to rise more rapidly.

ArmInfo. EBRD's First Vice President and Head of Client Services Group, Jurgen Rigterink, begins a week- long visit to the Caucasus on Monday, 4 September 2023. Starting in Armenia, the trip will continue in Georgia and finish in Azerbaijan, the Banks official website reports.