Cenbank presents more positive trends compared to projections

YEREVAN, MAY 18, ARMENPRESS. Macroeconomic developments are outlining more positive trends compared to central bank assessments in the direction of both economic activity and domestic demand, Central Bank governor Martin Galstyan said at the parliamentary committee on financial-credit and budgetary affairs while presenting the cenbank’s annual report.

Galstyan first spoke about the difficulties and the cenbank’s response to the COVID-19 pandemic and the period when martial law was declared in 2020. He noted the significant increase of inflation environment in Armenia’s main partner countries and in international commodity markets.

He said that a low economic activity and weak demand environment is maintained due to the COVID-19 pandemic and uncertainties over economic prospects.

According to 2021 Q1 projections, a slow recovery of aggregate demand will continue.

“It is noteworthy that current macroeconomic developments outline more positive trends in the directions of both economic activity and domestic demand compared to central bank assessments,” Galstyan said.

Positive developments were mostly observed in the industry and services, while the faster recovery of the domestic demand was mostly contributed by more positive developments in financial transfers from abroad and crediting of the economy.

Editing and Translating by Stepan Kocharyan