YEREVAN, 26 MAY, ARMENPRESS. Conditioned by the substantial reduction of the expected money transfers from Russia, the main trading partner of the Republic of Armenia, and by the weak investment activity in the economy, Armenia's Central Bank predicts 3.5 percent reduction of the economy’s private sector costs.

As “Armenpress” reports, according to the "Inflation Report" published by the Central Bank of the Republic of Armenia, in 2015, it is expected a smaller decrease in private costs, which is conditioned by the expected expansionary fiscal policy of the current year.

Seeking to maintain the financial stability and prices of the end of 2014, the toughening of monetary conditions was replaced by a significant softening of the monetary conditions since the beginning of 2015, which will enable to mitigate the expected reduction of the private costs level in 2015.

The Central bank forecasts that the private costs gradually will be restored in 2016-2017, recording a moderate growth tempo. During the mentioned period, the negative impact of the private costs on the economic growth will be eased.