The high growth rate of economic activity in Armenia slowed down in the third quarter of 2023, but it still remains at high levels, governor Martin Galstyan of the Central Bank of Armenia (CBA) told a press conference Tuesday.

"Economic growth [in Armenia] continues to be contributed by high growth in the construction and service industries. The latter bear the effect of the high domestic and foreign demand maintained in the economy. Due to the implemented monetary policy that curbs deflationary effects from the external sector and under the conditions of [the Armenian national currency] the dram’s rise, the high demand contributing to inflation and inflationary expectations have somewhat decreased. Nevertheless, the inflation in services and some goods [in Armenia] is being adjusted at a relatively slower pace," he said.

Galstyan noted that the CBA board finds it expedient to reduce the policy interest rate.

"The board will be consistent in ensuring demand regulation and stabilization of inflationary expectations with proper actions. In the specified monetary policy scenario, the 12-month inflation [in Armenia] will be maintained below the target level in the near future, then it will gradually increase and stabilize around the target 4% in the medium term," Martin Galstyan emphasized.