CENTRAL BANK OF ARMENIA FORECASTS FURTHER GROWTH OF INFLATION IN THE COUNTRY

ArmInfo
2009-04-17 20:32:00

According to the model of quarterly forecasts of the Central Bank of
Armenia, the inflation growth rates will accelerate in Armenia within
the next 12months. At the same time, GDP will constantly be below
the balanced level. As the CBA press-service told ArmInfo, Friday,
this is stated in the CBA’s situational report presented at the CBA
Board’s sitting on April 7.

It will be possible to more accurately forecast further inflation only
after May 2009 when the AMD devaluation impact on prices of imported
products, as well as the indirect impact on general inflation caused
by growth of gas tariffs are completely displayed. In this connection,
at the end of the second quarter of 2009 inflation may make up 5%. As
the report says, this is conditioned by AMD devaluation early in
March, growth of gas tariffs, and as a result of the Government’s
implementation of a number of programs having an expansive impact
on inflation.

According to the source, deepening of the crisis has a negative effect
on first and foremost industry and construction, which are most of
all subjected to foreign economic changes. From the viewpoint of
aggregate demand, the global crisis causes considerable reduction in
private consumption and investments and, as a consequence, reduction
in import and export.

From: Emil Lazarian | Ararat NewsPress