Armenia’s economy growth to range between 4.1% and 4.8% in 2014 – head of central bank
YEREVAN, June 10. /ARKA/. The chairman of the Central Bank of Armenia Artur Javadyan is projecting a 4.1-4.8% economic growth in the country by the end of 2014.
Twelve-month inflation may drop to about 4%, he said in the parliament on Monday.
Based on the current external and macroeconomic situation the Central Bank reviewed its projections and presented them in the report about monetary and credit policy for the second quarter of 2014 released on May 23, Javadyan said. Economic growth is revised from 5.4-6.1% to 4.1-4.8%, he said.
The downward adjustment in forecasts is made due to uncertain situation in developing countries, including partner countries, as well as due to reduced demand in the domestic market because of the energy price increase. Geopolitical processes are another factor contributing to the downward adjustment.
Javadyan said global financial organizations have made downward adjustments in their economy growth forecasts for developing countries, for Armenia’s partner-countries in particular.
The head of the central bank also said the 2014 monetary and credit policy will be expansionary and reminded the refinancing rate has been reduced by 0.25% two times during the year (in February and in May) and is 7.25% now.
Javadyan stressed that the regulator reduced the mandatory reserve norm from 4% to 2% as from January, which allowed directing extra funds to the economy.
‘These and other instruments indicated we will be implementing expansionary policies this year’, Javadyan said.
According to the government budget, Armenia’s economic growth is 5.2% and inflation is 4% (±1.5%) for 2014. The World Bank projection suggests Armenia will post a 5% growth in 2014. According to WB’s assessments, Armenia’s GDP growth may reach 5-5.5% from 2014 to 2017.
In January-April 2014, Armenia posted 4.6% inflation compared to the same period of the year before. –0-