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YEREVAN, NOVEMBER 5, ARMENPRESS. The Armenian Central Bank has re-assessed the long-term economic growth. A 5% long-term economic growth is projected instead of the previous 4,5%, Central Bank Monetary Policy Department Director Vahagn Grigoryan told a news conference.
“This is mainly related to developments in the labor power market,” he said.
He said the border crossing balance was negative in previous years, since 2018 it is already neutral, event positive to some extent.
Grigoryan said there are positive developments in the National Statistical Service’s labor power supply indicators. According to cenbank estimates these indicators will be maintained in the future and labor power cuts are not projected. “And in light of this we re-assessed the sustainable level of economic growth in long-term, making it 5% from 4,5%,” he said.
Economic growth is mainly taking place at the expense of productivity growth. Since services and industry growths are very high and agricultural growth is low, the labor power is shifting from the agriculture sector to other sectors where it will be more productive, according to the cenbank. Grigoryan said this is one of the main factors of growth at this moment.
Based on September figures the cenbank projects GDP growth at 6,9%. Growth is mainly ensured by industry and services.
Grigoryan said the figures can even rise to 7 or 7,1%.
Edited and translated by Stepan Kocharyan