Central Bank head: Armenia saw highest economic growth last year

Armenia recorded the highest economic growth in 2017 compared to the previous years’ figures, Chairman of Armenia’s Central Bank Arthur Javadyan said at today’s discussions of the 2017 state budget execution at the National Assembly.

He attributed the growth to both internal and external factors. “Our partner countries saw a growth in economy and incomes. Remittances from Russia restored, making up some 75 percent of the total foreign transfers which increased by 14.6 percent last year,” he said.

Arthur Javadyan pointed out the stimulus fiscal policies and increased credit in economy as key internal factors contributing to the last year’s high economic growth.

As for the price surge recorded in 2017, the Central Bank chairman said it was within the target range at the end of the year, comprising 2,6 percent. “The low inflation rates have contributed to a drop in the market interest rates. Under conditions of high economic activity, the state budget revenues and grants have increased,” he said.

Javadyan stressed the continued implementation of economic projects will enable to stabilize the economic growth.

Asked what kind of policies the Central Bank needs to pursue to have the inflation rates meet the target range and at the same time ensure a higher economic growth, the Central Bank chairman said at the moment the inflation indicators are encouraging in the country.

“The situation we have at hand – the inflation we have forecast – will become a reality. The agricultural products, a number of other factors, i.e. the tendencies of international prices, reginal risks and others will leave a major impact here,” he said, adding the price surge will not exceed the 4% target by the end of this year.