14:56,

YEREVAN, MAY 31, ARMENPRESS. According to the Central Bank of Armenia, after the deep decline of 2020 the country’s economy restored at faster rates than expected, CBA Deputy Governor Nerses Yeritsyan said at the joint session of parliamentary standing committees.

“After the deep decline of 2020, the economy of Armenia recovered at faster rates than expected in 2021, by recording a 5.7% level of economic growth. The growth was mainly connected with the restoration of external demand, as well as there were some factors in increase in domestic demand. The internal growth is connected with the growth in consumption of private sector, which was contributed by the high level of savings collected last year and the growth in monetary transfers coming from abroad”, he said.

He said that in the end of the year both the import and export growth was expressed by double-digit figures.

Yeritsyan said that 14.6% growth was registered in tax revenues because of the improvement of administration and the amendments to the tax code. The tax revenues in GDP increased just by 0.3%, however, the forecast was much more.

“The 2021 state budget expenditures increased by 5.8% compared to the previous year, connected partially with the growth of current expenditures, whereas in capital expenditures 4.1% decline was registered”, he said.

The Central Bank emphasizes the importance of improving the potential of the economic growth which will make possible to reduce the debt-GDP ratio to lower than 60%.

“Thanks to the steady consolidation of the fiscal policy and the effective combination of the monetary-loan policy of 2021 it was possible to ensure the macroeconomic stability in Armenia”, he said, adding that however the results of the fiscal policy deviated to some extent from planned midterm and long-term programs. “In this respect the Central Bank highlights adopting counter-cyclical fiscal policy during the year, but emphasized the necessity of clarifying the state expenditure strategy for sustainable long-term development of the economy”, the CBA Deputy Governor said.