YEREVAN. – The current developments in 2021 indicate the trend of Armenia's economic growth to recover faster than expected—and mainly conditioned by more positive developments in industry and services, the Central Bank of Armenia (CBA) informed Armenian News-NEWS.am.
Gross demand is also recovering faster than expected in the country, whereas private investment activity remains low.
In the conditions of the leading growth of the demand for production capacities, mainly inflationary effects are also projected from the internal economic developments of Armenia.
Taking into account the expected inflationary effects from the foreign sector and the Armenian economy, the CBA Board considers it expedient to increase the interest rate of this policy.
At the same time, the CBA Board considers the need for possible tightening of monetary-credit conditions in the near future. Under such conditions, 12-month inflation is projected to remain high in the short term, but then to gradually decline and stabilize around the target indicator of around 4% in the forecast horizon.